Swap Data Repository
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The Financial Crisis of 2007-2010 has led to wide spread change in the Governance, Regulation and Compliance System, resulting in stringent regulation and monitoring of derivatives. The draft regulation on Over-The-Counter derivatives (OTCs), Central Clearing Parties (CCPs) and Trade Repositories, the market of which is estimated at around USD 620 trillion till the end of year 2009-aims to bring greater uniformity, safety, transparency and stability.The “Title VII of the Dodd-Frank Act”, entitled the Wall Street Transparency and Accountability Act of 2010, is the new framework for regulation, compliance & supervisory oversight for the OTC derivatives market.

The Act mandates clearing, execution (on a regulated exchange or swap execution facility) and reporting of cleared and uncleared swaps to a trade repository or the CFTC or SEC by the market participants.

Client Challenges
  • Translating regulatory requirements to business understanding
  • Market participants need to set up connectivity between them & the Financial Market Utilities
  • Clearing houses, exchanges and large broker dealers, service providers to set up Swap Data Repositories (SDR)
  • Implementing ISDA(International Swaps & Derivatives Association) FpML® standard protocol for conducting and sharing derivatives trading
  • Record-keeping and data reporting requirements (including an audit trail and daily trading records as well as historical) on all OTC derivative
  • Accomplish effective market and trade practice surveillance
What Birlasoft Provides

Our GRC specialists & SMEs have developed strong capabilities in building Swap Data Repository (SDR) for clearing houses, Swap Execution Facilities (SEF) and large Derivatives Service Providers (DSP) and Application Programming Interfaces (API) for market participants to connect to the financial market. The comprehensive framework includes:

  • Business Impact Analysis
  • End to End Solution Implementation
  • Technology Integration
  • Data Warehousing and Archiving
  • Real Time Reporting
  • Analytics to mine Business drivers and Values
Business Value:

 Birlasoft helps organizations increase competitive edge with key value additions such as:

  • Initial assessment with regard to impacts of “Dodd Frank Act” on existing Business Model
  • ‘Peace of mind’ because of strong Project Management Processes and Controls
  • Increase Market Transparency, Reduce Operational Risk, Promote Data Accuracy and comprehensiveness
  • Real-time access for regulators in addition to periodic and ad hoc reporting of both Trade related Data and Position Data
  • Reduction in Process Overhead through Automation
  • Cost reduction through Process Improvement
  • Improve Turn Around Time
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