Sapient Global Markets, a provider of trade reporting capabilities as a fully outsourced solution, today announced that its CMRS platform is now ready to deliver a multi-asset regulatory reporting solution to help firms comply with the latest revisions by the Israeli central bank to derivatives trade reporting guidelines.
As a result of this latest enhancement, Sapient’s offering now provides clients a multi-jurisdictional platform that supports, in addition to the Bank of Israel, Australian (ASIC), Canadian (OSC, AMF and MSC), Dodd-Frank, EMIR, Hong Kong (HKMA) and Singaporean (MAS) requirements. CMRS Portal enables firms, particularly with a lower volume of reportable derivatives trades, to trace and track data throughout the lifecycle. This provides a much needed alternative to in-house solutions which are often uneconomic due to the initial investment required and ongoing maintenance and support overheads.
The Bank of Israel recently published new orders in relation to the reporting of FX, index-linked and interest rate derivatives transactions in which Israeli currency is involved. The new orders, which will become effective on January 1st, 2017, involves mandatory reporting for firms that have conducted a daily average of $15 million or more in transactions over the preceding 12 months. Financial entities that fail to report and continue to trade shekel derivatives will be subject to monetary penalties by the regulator.
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With such a fundamental shift, firms who require a limited approach to reporting compliance can tap CMRS Portal as a self-service solution to refine and test their reporting obligations ahead of the scheduled deadline. Managing these changes in-house would mean higher costs due to required infrastructure and integration investment, so it is no surprise that there is demand in the market for external services in this area.
Since the Bank of Israel requires new reports to be submitted via Cyber-Ark secured vault, in an XML file, CMRS has connected directly to the regulator’s secure repository.
Arun Karur, Vice President at Sapient Global Markets, commented: “We have seen a significant number of client and market participants, both buy- and sell-side, as well as Custodians, requesting support for Bank of Israel reporting. Sourcing the trade data, testing report templates for completeness and accuracy, and ensuring transmission requirements to existing in-house platforms is a large undertaking.”
“Our dedicated team of technologists has worked on Bank of Israel reporting logic within CMRS, testing the reporting templates and connectivity to Cyber-Ark in preparation for the go live at the start of 2017,” he added.