FINBOURNE Technology and Droit are set to launch an end-to-end position reporting solution which will allow users to meet their regulatory obligations more efficiently and effectively, The TRADE can reveal.
The joint, full-stack solution enables both the buy- and sell-side to manage shareholder disclosure obligations for long, short and takeover panel reporting.
Brock Arnason
According to the firms, the offering reduces compliance costs and manual dependencies as well as enhancing users’ control via its intuitive interface which simplifies workflow.
Speaking to The TRADE, Thomas McHugh, chief executive and co-founder of FINBOURNE Technology, explained: “Timely, accurate and audited data is the foundation of regulatory reporting. Regulatory rules are the building blocks on these foundations. Managing the required data as requirements change has become expensive and burdensome.
“Interpretation of data and rulesets together, as both change over time, is an even more difficult and expensive task if done alone. Our partnership with Droit brings this expertise from our firms and partnerships to tackle this challenge in a compelling way. We are bringing cutting edge technology and community expertise together in a single end-to-end offering.”
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The unified approach between cloud-based investment data management software provider FINBOURNE Technology and Droit, a technology firm at the forefront of computational law and regulation, ensures consistency and clarity when it comes to complex regulatory interpretations, as well as accurate reporting.
“This partnership enhances our ability to safeguard asset managers by making sense of shareholder disclosure data when it comes to complex trading books and provide a level of granular reporting detail that is unmatched in the industry,” explained McHugh.
Droit’s capabilities in translating and processing detailed guidelines from all major global jurisdictions, as well as automating the decision-making process for shareholder disclosure reporting eligibility, coupled with FINBOURNE’s advanced data transformation capabilities means that the new solution seamlessly maps the multiple data inputs needed to evaluate rules.
“The asset management industry can directly benefit from the experience of their sell-side counterparties. FINBOURNE’s platform, built specifically to support the volume and complexity of data that characterises position reporting, integrated with our consensus-driven eligibility rules, offers firms unrivaled traceability, transparency, and auditability,” said Brock Arnason, founder and chief executive of Droit.
Specifically, the offering leverages FINBOURNE’s financial data management platform LUSID, embedded with Droit’s position reporting product – based on consensus interpretations of requirements from a consortium of six global banks, including Barclays, BNP Paribas, Goldman Sachs and HSBC.
More than 100 global jurisdictions currently have position reporting obligations, meaning that market participants must report both equity and equity derivatives holdings to regulatory bodies – a complex, time consuming and costly process.
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Addressing the importance of position reporting, Arnason, tells The TRADE that “[it] is a data management and regulatory interpretation challenge that firms must tackle […] Those responsible for position reporting obligations will rest assured that they can disclose with confidence.”