Northern Trust has deployed a new compliance management reporting solution (CMRS), using technology developed by Sapient Global Markets.
Northern Trust will now be able to deliver delegated reporting requirements for its clients under the Dodd-Frank Act and European Market Infrastructure Regulation (EMIR) for all derivatives including over the counter/exchange traded, cleared/bilateral and foreign exchange.
The increasing complexity and growing long-term cost of adhering to global regulatory reporting requirements is a significant challenge to the financial services industry. Northern Trust is working together with Sapient Global Markets to address this issue with CMRS, a sustainable solution developed from Sapient Global Markets’ deep understanding of the capital and commodity markets and technology expertise. With the CMRS tool, Northern Trust is uniquely positioned to provide its clients with an innovative, post-trade reporting platform to meet complex reporting obligations while managing overall cost.
“We are pleased to work with Sapient Global Markets to meet the complex and evolving needs of our clients, offering them flexibility to define their own desired regulatory support model,” says Peter Sanchez, head of Northern Trust Hedge Fund Services. “The CMRS solution will allow us to automate key derivatives processes, which will improve efficiency and reduce costs. Additionally, it will enable us to streamline reporting and speed up the data collection, transformation and submission process, helping firms minimise business risk associated with non-compliance. Our collaboration with Sapient provides our clients a market leading front-to-back derivatives operational and regulatory support model across all global client and asset types.”
CMRS is a dynamic solution that imports Northern Trust’s client trade data in a single system to conduct trade reporting and reconciliation including collateral and valuation, portfolio reconciliation, and dispute workflow. A single, comprehensive view of compliance across systems, asset classes, and geographies helps firms understand and react more quickly to compliance needs. The CMRS tool supports Northern Trust’s outsourcing, custodial, and fund administration functions, including investment operations outsourcing and hedge fund services.
"Our clients are facing one of the most complicated regulatory environments seen in our industry to date,” says John Southgate, head of derivatives product in Europe, Middle East and Africa at Northern Trust. “CMRS represents a direct extension of our existing OTC derivatives middle office servicing abilities and a complimentary addition to our general compliance, custody, and collateral support offerings. Sapient Global Markets’ scalable solution will help us continue to offer holistic global support to our clients using derivatives.”
CMRS also aggregates and reconciles derivatives data across multiple trade repositories and jurisdictions in a single solution. This enables Northern Trust to be flexible and efficient in servicing the varied demands of its middle office asset manager clients and support evolving global requirements including portfolio reconciliation.
“Despite the February and August reporting deadlines, many buy-side firms are still figuring out how to provide the required reporting services to their clients and support their derivatives business,” says Randall Orbon, senior vice president, Sapient Global Markets. “Northern Trust is ahead of its peers because it recognised the complexity of the regulatory landscape and the value they could provide their clients with a transformative solution. We have collaborated closely with Northern Trust throughout the process to understand its precise reporting requirements and help support a critical element of its post-trade reporting infrastructure.”