Sapient Global Markets, a consulting firm and technology provider for the capital markets, has made a cloud-hosted version of its compliance and reporting system (CMRS), a product that offers a common platform to manage and publish reporting requirements globally. The cloud-based system allows firms to aggregate large amounts of data from different systems before applying reporting eligibility logic and delivering it to a swaps data repository.
"Very small players did not have the capacity or the budget to actually make the investment of buying the infrastructure, building something from the ground up, and managing around an ongoing business," says Arun Karur, VP and head of commodities at Sapient in an interview with Wall Street & Technology. "That was too much of a financial drain. We very soon realized that customers were open to a hosted solution."
Financial institutions are starting to accept cloud-host products as a more efficient way of dealing with data, mentions Karur. Institutions that were asked about using a cloud-based model were initially hesitant when CMRS was developed in 2011.
According to Karur, firms that use CMRS process anywhere from 30 to 200,000 trades a day, with larger firms using the installed version and smaller firms using a hosted version.
CMRS connects all major trading and risk management systems and other products. The cloud allows high volume swaps processing for firms while offering speed and flexibility on a platform where customers can configure reporting rules, manage varied data sources, apply filtering, exception and aggregation rules and configure destination reports in required formats, according to Sapient.
After surveying about 30 firms, Sapient realized that financial institutions preferred an out-of-box solution to handle regulatory reporting processes in 2010.
CMRS was created to tackle the demand for processing large amounts of OTC swaps data to report to repositories in compliance with regulations in different countries. The solution is updated to handle any changes in legislation effecting reporting regulations and is available via subscription.
"Our vision from the get-go was to build a solution which would cater, not just to Dodd-Frank, but to all regulations in the world," says Karur. "The product's key feature would be to source data from any trade capture system."
A point-to-point system would not allow the kind of flexibility firms would need to comply with regulatory reporting in different countries, according to Karur.