News Room
January 2012 - Crossbridge participates in industry roundtable on the impact of regulatory reform on Reference Data and Client Onboarding functions
BackMatt Shaw, Associate Partner at Crossbridge, is pleased to have attended a small industry roundtable, hosted by Barclays Capital, to discuss the impact of regulatory reform on Reference Data and Client Onboarding functions. Representatives from HSBC GBM, JP Morgan Chase and Nomura were present and insight was shared into the challenges, costs and time constraints commonly faced, how these are being mitigated and what solutions are being deployed.
Discussion focused on:
• the volume and timing of US, European and International regulations and the potential for resource and implementation conflicts
• the burden (and penalties) of additional regulatory data during KYC and Customer On-boarding
• local diversions from international regulations in certain Asian and Central European (non-EU) countries
• correctly applying enhancement to BAU processes and remediation of existing data populations
• segregation of changes across the firm's Legal Entities and Lines of Business
• technology and infrastructure challenges and management of up and downstream impact
Much of the conversation centred on the Legal Entity Identifier (LEI) initiative. Although this has not been officially adopted yet, there was strong consensus (and there is industry momentum toward) using the LEI across Dodd-Frank, EMIR and other regulations which may require it. In particular, the group discussed:
• registration of new and existing market participants with DTCC
• matching and onboarding of LEI data from DTCC/Avox to in-house systems
• the transparency of the centralised DTCC, Swift and Avox operating model
• the long-term effort required to complete the process of acquisition and distribution for the 'universe' of market participants
Crossbridge looks forward to the next informative session which aims to extend the invite to additional firms and look across the regulatory landscape in order to assess the workload in 2012 and beyond. This review will be used to generate specific topics and priority areas for subsequent focus sessions.
