Major banks and Goldman Sachs Asset Management adopt MiFID II compliance engine

GSAM, BNP Paribas, Credit Agricole and UBS among firms to adopt regulatory digitisation platform.

Six major global banks have signed up to a digitised MiFID II trade compliance engine alongside Goldman Sachs Asset Management (GSAM), the platform’s first buy-side user.

Launched by Droit Financial Technologies, the upgraded ADEPT service offers a digital version of MiFID II law and provides users with instant verification and specific source text for real-time decision making.

The platform aims to ensure regulatory compliance with every transaction by producing automated trading decisions, with analysis to decipher whether clients are up to date with regulations across their counterparties and geographies.

BNP Paribas, the corporate and investment banking arm of Credit Agricole, Goldman Sachs’ broker-dealer and asset management businesses, and UBS are among the firms that have adopted the platform.

“Droit’s ADEPT product is a central part of our eligibility architecture for MiFID II for both our broker/dealer and GSAM businesses, across a range of obligations,” said Jo Hannaford, managing director, technology division at Goldman Sachs.

“Droit’s innovative approach to the digitisation of regulation and eligibility, and the evolution of their ADEPT product fits well with our overall strategy.”

MiFID II is the latest regulation implemented in ADEPT which has been live since March 2014, alongside all G20 regulatory regimes, global CCPs and executions.

“Digitisation is much more than an exercise in tagging data; it’s the complete analytic structuring of one of the financial markets’ largest ever pieces of legislation,” added Satya Pemmaraju, CEO of Droit.

“Droit provides the full stack, starting with digitising the actual legal texts into an open, standard, machine-readable format through to standard executable implementations within real-time systems. As regulations live and breathe, so our clients’ implementations and legal sources evolve in synchronicity.”

In 2016, Goldman Sachs, Wells Fargo and prop trading firm DRW led a $16 million investment in Droit Financial Technologies. The funding was used to support the expansion of its global operations, sale and marketing teams, and the opening of a new office in Singapore.

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