Tackling Shareholding Disclosure challenges with Big Data and RegTech for a CIB

Project overview

The law obliges investors who exceed or fall below certain holding threshold for publicly traded companies, to notify these “thresholds crossed” by providing certain information within a binding period of time. European “Transparency” Directive set out requirements in terms of threshold crossing. Since 2015, regulatory requirements have become more strict and request to include AM position and indices which dramatically increase data volume and security rules. Legacy solution architecture was not able to comply with new constraints. The complexity of the matter reveals an organizational issue that cause an important delay in project initiation.

Head of Market abuse

Stake

Unstuck in a short time frame a strategic project previously slowdown by an innovative technology. The mission goal was to make decision on which strategy to adopt based on cost, planning, operational efficiency gain and project risk.

Elements to be covered: functional and data architecture, organization, use of RegTech solution or in-house implementation on Big Data technology.

Objectives

• Support our client to define his requirements (business, IT, security).
• Organize a RFP on RegTech vendors for Shareholding Disclosure.
• Define the technological target that improve operational efficiency.
• Draw the project scenario with associated cost / risk / planning that take into account the complexity of compliance / regulatory reporting especially CIB instruments.
• Accompany the client to make his choice between in-house solution vs RegTech Technology in the define agenda.

Main constraints

• Define strategy to integrate whole group entities transactions on Equity in the data lake,
• Quickly organize a RFP during mission in order to make choice on RegTech scenario,
• Number of contributors to scenario,
• Complexity of regulation and instruments (equity, derivatives).

Execution

Benefits

• Client was able to select his strategy and start project implementation in time.
• Proposed hybrid solution (DataLake + RegTech) to comply faster with regulatory requirements and cover operation risk.
• Secured processes : less manual updates, inputs, verifications,
• Improve of data perimeter & quality : better scope, better shareholdings calculations,
• Improve performance : user experience (UI), operational workflow on manual updates, rules calculations

Method

Mission comes in three phases :

Diagnostic : Flash report on the current context, interviews with various stakeholders, requirements definition and evaluation matrix (scorecard), Software vendors discussion.

Architecture definition : Synthesis of the results of the working groups to define the business requirement and architecture choices: In-House (Big Data), Vendor, combination of both), scorecard and comparative analysis of different scenarios, cost-benefit analysis.

Conclusion and closing : Redaction of final scoping document and presentation of conclusions, change management recommendations, ensure the good link between the scoping phase and the start of the project implementation.

Delivable

• Interviews report,
• Flash diagnostic,
• Scorecard,
• Scoping document (planning, budget, risk, contributors…)
• Conclusion drawing and recommendations

Discover our offer “Risk, Regulatory & Compliance”