Streamlining Derivatives Reporting for a Leading European Bank

In the dynamic financial market, investment banks must adhere to evolving regulations and reporting requirements to ensure transparency and compliance across multiple geographies. Navigating this complex regulatory environment is crucial for maintaining compliance and operational efficiency.

This case study explores how Infosys transformed regulatory reporting infrastructure and processes, enabling a leading global bank to achieve compliance and accuracy in Depository Trust and Clearing Corporation (DTCC) submissions.

About the Client

The client is a leading European investment bank with a strong global presence. They provide comprehensive financial services to corporations, governments, institutional investors, small and medium-sized enterprises, and private individuals. Their expertise spans investment and corporate banking, retail services, asset management, and private wealth management.

Challenges

The client aimed to handle higher volumes, improve exception management, and reduce the total cost of ownership (TCO). Objective was to:

• Build a scalable and unified multi-asset class reporting engine
• Develop a robust eligibility rule engine
• Create a unified multi-geography reporting engine
• Improve straight through processing and optimize exception management
• Reduce the total cost of ownership (TCO)

Infosys Solutions

To address the client's requirements, Infosys implemented comprehensive derivatives reporting solutions, covering several global regulators. These included the Commodity Futures Trading Commission (CFTC) of the United States, the European Market Infrastructure Regulation (EMIR), the Hong Kong Monetary Authority (HKMA), Canada’s Money Market Statistical Reporting (MMSR), and the Australian Securities and Investments Commission (ASIC). A dedicated team of over 100 with expertise across asset classes and markets spearheaded the project.

Infosys took end-to-end ownership from requirements gathering and design to development, testing, and deployment. The solutions replaced the earlier asset-class, region, and instance-specific reporting with an advanced, unified rule engine and reporting system, ensuring efficiency and compliance.

Additionally, Infosys designed a management information system (MIS) for the regulatory operations team. The system provided eight real-time report tracking screens to effectively monitor responses from regulators, including acknowledgements (ACKs) and negative acknowledgments (NACKs), helping with seamless tracking.

Business Benefits

The transformation of the bank's derivatives reporting process led to streamlined operations, enhanced compliance, and improved performance. Key benefits included:

• 100% on-time compliance with regulatory requirements
• Near-100% accuracy in DTCC submissions
• Unified reporting engine providing a single view of transactions
• Re-used workflows and improved efficiency in handling higher submission volumes
• Significant reduction in the TCO through platform consolidation
• Improved exception management via the newly designed MIS

Get in Touch

Looking to transform your regulatory reporting, enhance compliance, and boost operational performance? Contact Infosys today to explore our tailored solutions.