# Increasing regulatory red tape prompts a new approach to trading data management among FS firms Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2019-03-28 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: New Financial Regulatory Research Reveals Compliance Challenges Meta Description: Inforalgo's Jordan Ambrose interprets JWG's findings on growing compliance costs and inefficiencies, prompting search for sustainable reporting URL: https://financedigest.com/increasing-regulatory-red-tape-promptsa-new-approachto-trading-data-management-among-fs-firmshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/jordan-ambrose-1736839087512-compressed.jpeg) By Jordan Ambrose is CEO at Inforalgo ### _Intensifying international regulatory demands around trading transparency are tipping financial institutions over the edge, according to new research. Inforalgo’s Jordan Ambrose interprets the findings_ ![Jordan Ambrose is CEO at Inforalgo](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/jordan-ambrose-1736839087512-compressed.jpeg) Jordan Ambrose is CEO at Inforalgo The latest wave of financial services reporting mandates, designed to foster greater trading transparency globally, is pushing many institutions over the edge. Compliance is consuming too much time and budget, they say – without adding any [real value for the business](https://www.financedigest.com/the-role-of-invisible-real-time-payments-in-fueling-the-future-of-cx-in-business.html "The role of invisible, real-time payments in fueling the future of CX in business"). So concludes new research from independent financial regulatory think-tank [JWG](https://jwg-it.eu/), commissioned by [Inforalgo](http://www.inforalgo.com). The findings shine a light on [soaring data/IT project costs](https://www.financedigest.com/analysis-east-europeans-count-their-pennies-for-christmas-as-food-costs-soar.html "Analysis-East Europeans count their pennies for Christmas as food costs soar"), and point to growing interest in alternative approaches to transaction data management. Instead of tackling each regulatory requirement separately, firms are seeking a more repeatable approach to collating and validating information, and preparing reports. The regulatory burden is certainly substantial. Taken together, the new or additional requirements of MiFID II, EMIR, Dodd-Frank, FINRA TRACE, CAT, SFTR, and MAS, make for an onerous compliance exercise for trading parties keen to maximise [global market opportunities](https://www.financedigest.com/case-handling-machines-market-global-size-growth-opportunities-industry-potential-segmentation-overview-trends-and-forecast-studies-2028.html "Case Handling Machines Market Global Size, Growth Opportunities, Industry Potential, Segmentation Overview, Trends And Forecast Studies 2028"), as each update goes live. [**Costs & inefficiency soar**](https://www.financedigest.com/uk-car-output-rises-in-august-soaring-costs-cast-shadow-over-recovery.html "UK car output rises in August, soaring costs cast shadow over recovery") It isn’t only the risk of non-compliance, potential fines and reputational damage that has prompted a review as [demands rise](https://www.financedigest.com/global-market-study-on-fatty-acid-supplements-rising-demand-for-infant-formula-aiding-market-acceleration.html "Global Market Study on Fatty Acid Supplements: Rising Demand for Infant Formula Aiding Market Acceleration"). Firms are also becoming more acutely aware of the amount of information repetition and duplicated effort involved as they collate, prepare and turn around [trade data](https://www.financedigest.com/data-centres-and-the-changing-financial-trading-landscape.html "Data centres and the changing financial trading landscape") to fulfil each authority’s particular requirements. “(The) [business is fed up with investing](https://www.financedigest.com/unlocking-fresh-business-investment-opportunities-beyond-covid.html "Unlocking fresh business investment opportunities beyond COVID") in regulation! Instead, we need to slash costs,” remarked one [project manager](https://www.financedigest.com/power-management-integrated-circuit-pmic-market-is-projected-to-grow-at-6-4-during-2021-2028.html "Power Management Integrated Circuit (PMIC) Market is projected to grow at 6.4% During 2021-2028") from a major German bank participating in JWG’s qualitative research, among 12 global financial institutions, late last year. The bank is currently grappling with MiFID and MAS (Singapore authority) reporting. Time pressures are a very real concern too. If firms wait until the end of the day to reconcile all of their transaction data and [generate reports](https://www.financedigest.com/rising-investments-in-renewable-power-generation-to-amplify-demand-of-substation-monitoring-system-market-fact-mr-report.html "Rising Investments in Renewable Power Generation to Amplify Demand of Substation Monitoring System Market: Fact.MR Report"), this can cause bottlenecks – especially if exception/query resolution involves input across different time zones. **[Creating sustainable](https://www.financedigest.com/growing-exports-of-non-traditional-jamaican-crops-creating-sustained-opportunities-for-ackee-market-sale.html "Growing Exports Of Non-traditional Jamaican Crops Creating Sustained Opportunities For Ackee Market Sale") reporting** Above all, firms want to manage their regulatory obligations in a more efficient, reliable and repeatable way. Relying on manual processes and spreadsheets is impractical, burdensome, costly, inefficient and fraught with risk. It prevents a clear line of sight across [trade activity](https://www.financedigest.com/ethereum-software-upgrade-activated-ether-reverses-losses-trades-up.html "Ethereum software upgrade activated; ether reverses losses, trades up"), and hinders potential useful insights – for example, into the relative cost of transactions, or where common errors are concentrated. Ideally, FS providers need to be able to routinely amalgamate data and get it into a robust, readily deployable and centrally viewable format – wherever the respective original sources and formats. A senior [technology leader](https://www.financedigest.com/supporting-the-net-zero-agenda-as-technology-leaders.html "Supporting the net zero agenda as technology leaders ") at a North American bank, contributing to the research, admitted that, because his organisation still had a lot of manual reference data maintained in spreadsheets, and had many, varied data sources – six in Singapore for trading source data; three for reference data; and 20 connection points in Ireland – its reporting activities had become highly cumbersome. **[Intelligent automation](https://www.financedigest.com/why-intelligent-automation-should-be-a-top-priority-for-enterprises-in-2022.html "Why Intelligent Automation should be a top priority for enterprises in 2022") offers an answer** Because different regulators each have their own particular [data demands](https://www.financedigest.com/demand-for-lifesciences-data-mining-and-visualization-market-to-surpass-us-6000-mn-by-2026.html "Demand for Lifesciences Data Mining and Visualization Market to Surpass US$ 6,000 Mn by 2026"), it isn’t a simple case of being able to prepare fields once to meet multiple needs. Rather, firms need to employ rules-driven workflow to automate [reporting according](https://www.financedigest.com/according-to-the-recently-published-report-by-persistence-market-research-the-global-market-for-gene-expression-analysis-will-reflect-a-steady-growth-during-the-forecast-period-2017-2022-by-the-end.html "According to the recently-published report by Persistence Market Research, the global market for gene expression analysis will reflect a steady growth during the forecast period, 2017-2022. By the end of 2022") to each authority’s particular requirements. As an IT manager at a [European investment bank put](https://www.financedigest.com/analysis-war-in-ukraine-puts-pressure-on-east-european-banks-to-prop-up-sinking-currencies.html "Analysis-War in Ukraine puts pressure on East European banks to prop up sinking currencies") it, if he had spare budget to spend on regulatory reporting, he would spend it all on central eligibility rules. “Enrichment and [transformation of data](https://www.financedigest.com/is-the-road-to-data-transformation-slowing-digital-transformation.html "Is the road to data transformation slowing digital transformation?") is easy once the rules are defined, known, agreed and accessible,” he said. In JWG’s findings, firms were looking for an ability to complete each [set of reporting](https://www.financedigest.com/high-barrier-packaging-films-for-pharmaceuticals-market-set-for-5-cagr-through-2029-blisters-remain-top-application-area-says-a-new-fmi-report.html "High Barrier Packaging Films for Pharmaceuticals Market Set for 5% CAGR Through 2029; Blisters Remain Top Application Area, Says a New FMI Report") fields automatically, with the precise information that is eligible for declaration under each set of regulations. Having a [rules engine capable of assessing data’s fit, accuracy and completeness, without writing or embedding code each time requirements are revised or added to, was high on interviewees’ wish lists – as was being able to re-use rules for other regulations](https://www.financedigest.com/german-regulator-stays-vigilant-as-meta-changes-vr-headset-rules.html "German regulator stays vigilant as Meta changes VR headset rules"), wherever possible. The study also revealed interest in a more holistic approach to automating [trading data management](https://www.financedigest.com/early-detection-of-mismatched-trades-is-key-to-managing-risk-and-maximizing-profits-on-the-pl-desk.html "EARLY DETECTION OF MISMATCHED TRADES IS KEY TO MANAGING RISK AND MAXIMIZING PROFITS ON THE P&L DESK"), for instance via a ‘centralised data hub’ capable of both supporting multiple trading-related process requirements, and of providing insights that might help firms reduce the cost of trading and improve yields. Inspired by the potential, most of the firms JWG interviewed had already begun to allocate some resources to this kind of strategy. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---