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London, UK – 23rd January 2014: Lombard Risk Management plc (“Lombard Risk”) a leading provider of integrated regulatory reporting, compliance and collateral management solutions for the financial services industry announces 55th UK firm selects REPORTER to meet EBA Common Reporting / CRD IV regulatory demands.
Full coverage of comprehensive credit, market and liquidity risk and financial reporting as required under Basel III (with full compliance with the data point model).
Banks, building societies, investment firms and asset managers are all impacted by the European Banking Authority (EBA) common reporting regulations, which include COREP and Financial Reporting (FINREP).
Lombard Risk REPORTER fully supports key supervisory calculations, reporting and electronic delivery as standard, and additionally supports wider ad-hoc and management reporting requirements. It is both flexible and totally scalable in terms of deployment, ranging from a full end-to-end solution, through to Excel upload / manual entry.
REPORTER for EBA reporting enables firms to:
- Automate end-to-end regulatory reporting processes from data acquisition, standardisation through to calculation, reporting and submission via XBRL
- Select from multiple deployment options that fit around existing architectures and processes that support a rapid deployment and superior solution total cost of ownership relative to other systems
- Leverage existing data sources for complete coverage of reporting requirements
- Achieve enhanced ad-hoc reporting
Robert Markham explains: “The ever-changing regulatory landscape requires firms to have a single, robust and proven solution that meets all the regulations, now and in the future. This latest set of regulations has inspired firms to review their legacy systems and many have elected to replace them with a single, automated end-to-end solution.
Lombard Risk REPORTER is the only solution available that offers a blend of packaged functionality that also provides the flexibility and configurability that firms need in order to meet their specific requirements. As a result, our client base ranges from large retail banking organisations, through to subsidiaries of foreign banks and investment firms of various sizes and authorisation type.”
Lombard Risk has an extensive team of financial business matter experts, many of which have held regulatory roles in financial institutions. Lombard Risk has been tracking this regulation since its conception and providing the market with informative updates at every step of the way via a series of events, online briefings and company briefings.
One attendee commented:
Join Lombard Risk complimentary Regulatory Update Conference on 11th February 2014 at the London Chamber of Commerce & Industry.
Lombard Risk announces COLLINE collateral optimisation module
Configurable technology to support full asset inventory optimisation
London, UK – 19th November 2013: Lombard Risk Management plc (“Lombard Risk”) a leading provider of integrated collateral management, regulatory compliance and reporting solutions for the financial services industry, announces its collateral optimisation module for COLLINE.
- For more information on the integrated solution visit our website HERE >>>
- Attend a webinar on “Inventory management and optimisation” on 3rd December – register on line HERE >>>
- Register to receive a copy of the Lombard Risk inventory management and optimisation whitepaper HERE >>>
COLLINE® – collateral management and clearing is designed by experienced business practitioners and provides end-to-end, cross-product (OTC derivatives, repo and sec lending) collateral management and clearing. COLLINE is a consolidated solution for mitigating exposure risk while satisfying the growing demand for multiple/global entities, cross-product margining, clearing, initial margin calculation, optimisation, master netting, MIS reporting, dispute management and electronic messaging.
The changing regulatory environment is creating increased demands for collateral in both the cleared and uncleared markets, across all financial products. As a result there are direct and increasing pressures on both the availability and cost of collateral.
John Wisbey, CEO, Lombard Risk explains: “Collateral is simultaneously becoming more expensive and harder to source, creating the so-called ‘collateral squeeze’. COLLINE’s optimisation module enables real-time determination of the most optimal asset to be used, in any scenario, according to user-defined and evolving priorities.”
Lombard Risk COLLINE optimisation module incorporates real-time algorithmic calculation of optimal inventory utilisation and collateral allocations to:
- Improve liquidity by optimising use of all available assets, across all business lines
- Reduce the cost of collateral programmes by calculating ‘cheapest to deliver’/’most expensive to hold’
- Match client investment strategies, and adapt to changing market conditions and business priorities
- Reduce the operational burden of collateral allocation processes
- Bring the providers and consumers of collateral together utilising a single technology platform
The flexible design is intended for use as both a front office and back office tool, for firm-wide and cross-product inventory consolidation and optimisation, and as an integral operational tool to identify the best asset to use in response to a margin event.
COLLINE optimisation provides an interactive user interface, with configurable rules and goals that allow the user to define ‘optimal’ in their own terms – according to individual business drivers, priorities, investment strategies or constraints. As such COLLINE optimisation can be used by any firm, large or small, and can be flexed to respond to changing priorities over time. Flexible functionality will include extensive data simulations for detailed scenario analysis (‘what-if’) and integration with proprietary cost models.
Elaine MacAllan, Product Development, COLLINE, Lombard Risk adds: “Optimisation now appears in most firms’ top 3 strategic priorities, although the business drivers, priorities and definitions of ‘optimal’ vary widely. Accordingly we have focussed on developing a highly configurable rules-based solution, maximising the use of our consolidated inventory management capabilities on a single platform, for the benefit of both the front office from a strategic asset utilisation perspective, and the back office from an operational cost and efficiency standpoint.”
Joint press release from BNP Paribas Securities Services, InteDelta, Lombard Risk and TMX Technologies
London, UK – 9 October 2013: InteDelta, a risk management consultancy, has collaborated with BNP Paribas Securities Services, Lombard Risk and TMX Technologies to produce a whitepaper titled “Initial Margin: a commentary on issues for centrally cleared and non-centrally cleared business”. The whitepaper explores the regulatory drivers for the implementation of initial margin and the challenges that institutions face from a systems, organisational and modelling perspective. The whitepaper will be released at Fleming Europe 7th annual collateral management forum, Amsterdam (9/11th October 2013).
Excerpt from the whitepaper: “The financial crisis revealed major weaknesses in the global financial system, particularly in the interdependence between large financial institutions. A number of regulatory initiatives are in the process of being put in place to reduce the overall counterparty risk in the system. Most significant is the move to central clearing. A key risk-mitigating feature of central clearing is the requirement to post Initial Margin (IM) to Central Clearing Counterparties (CCPs). BCBS IOSCO has published a policy framework recommending the bilateral posting of IM also for transactions not subject to central clearing.”
The firms that collaborated to produce the whitepaper are:
BNP Paribas Securities Services is a wholly-owned banking subsidiary of the BNP Paribas Group and a leading provider of custody, clearing and investment operations solutions. Through Collateral Access, its end-to-end solution, BNP Paribas Securities Services provides buy- and sell-side clients with a full range of services enabling them to mitigate their counterparty risk and to optimise and protect their collateral.
David Beatrix, Business Development – Market and Financing Services, BNP Paribas Securities Services, says: “The new rules and practices in relation to initial margins of cleared and bilateral OTCs impose new requirements to financial institutions, both in terms of liquidity and asset protection. As a leading custodian, we continuously develop solutions to help our clients to meet these challenges, keeping a constant focus on risk management.”
InteDelta: a risk management consultancy with a wide range of experience in advising institutions on all aspects of margining and collateral management.
Michael Bryant, Managing Director, says: “The introduction of mandatory initial margin requirements is going to have a major impact on institutions for both cleared and non-cleared business. Institutions will need to respond by adapting their organisational structure and processes and ensuring they have in place adequate systems, methodologies and policies.”
Lombard Risk are the creators of COLLINE for front-to-back, cross-product collateral management and margining on a single platform. It enables real-time management of legal documentation, margin calculation, validation, call processing and reporting. COLLINE provides calculation and validation of initial margin requirements for bilateral and cleared models, and offers seamless integration with external initial margin calculation providers, such as Razor Risk which enables ‘what-if’ scenarios to support pre-clearing trade decision making.
Helen Nicol, Product Director, COLLINE, says: “Since the financial crisis, the need to post initial margin is now of critical importance under the global recommendations governing both cleared and bilateral margin relationships. There has been a significant increase in the requirement for financial institutions to post initial margin, and therefore the ability to calculate your own, and validate your counterparty/clearing house/broker IM requirements has become of paramount importance. COLLINE offers flexible validation and calculation under all models, with seamless integration with external providers, embedded within the margin workflow.”
TMX Technologies Razor Risk offers trade and portfolio pricing, risk valuation tools to support initial and variation margining. A powerful risk measurement and management solution that will enable central counterparties, clearing brokers, dealers, traders, banks and asset managers to assess their portfolios of clearable and un-clearable derivatives to ensure margin calculations are meaningful, competitive and appropriate. The tools available within Razor Risk provide real-time capabilities to reconcile margin calls decide which the optimum venue or bilateral counterpart to trade with is and enhance the funding, capital allocation and collateral optimisation decisions needed under the increasingly complex regulatory regimes. By providing various approved methodologies which support both standardised and Internally Approved models, Razor Risk provides independent validation and reconciliation capabilities alongside the full suite of integrated Market Risk, Counterparty Credit Risk and Capital Calculation functions already in use in CCP’s, banks, Investment Managers and brokers around the world.
Peter Walsh, Sales Manager, TMX Technology Solutions Razor Risk, says: ”Whilst collateral management solutions, custodian and clearing brokers help address a number of the key areas under the new EMIR and Dodd-Frank regulations, the ability to independently calculate margin amounts by trade or portfolios of new or back-loading existing trades, in real-time will provide the ‘icing on the cake’. By eliminating significant and costly reconciliation and dispute management costs, through optimising the portfolio bifurcation decision making processes and integrating seamlessly into the Collateral Management and related systems, Razor Risk enables optimised performance and compliance in this complex but vital environment.”
Securities Lending Times – visit their website HERE
The quest for single solution technology in collateral management is long and fraught with difficulty.
Elaine MacAllan of Lombard Risk treads the tricky path
Lombard Risk announces “REFORM™ for transaction reporting” went live and enabled firms to meet February 28th Dodd-Frank Act Title VII regulatory deadline for FX, commodities and equity asset classes.
- 28th February 2013: deadline of Dodd-Frank Act for FX, commodities and equities
Join Lombard Risk business matter experts at an online business briefing (webinar) on these regulatory issues on 17th April 2013. Find out more HERE >>>
Dodd-Frank Act (Title VII) Wall Street transparency and accountability is regulation by the CFTC and SEC for the better management of OTC swaps markets. European Market Infrastructure Regulation (EMIR) and Markets in Financial Instruments Directive/Regulation 2 (MiFID/R2) are other jurisdictional equivalents, and will become operational in due course, as will various Asian regulatory initiatives, for example by the Hong Kong Monetary Authority.
Financial institutions are required to report details of specific trades to the appropriate trade repository and notify of any amendments for the duration of the trade. All information is required to be reported “as soon as technically practicable”, from T+15min to T+1day.
Lombard Risk launched REFORM in July 2012 to meet the above requirements and provide firms with real-time global transaction processing and reporting to multiple swap data and trade repositories, ensuring transparency of processes and keeping firms compliant.
Lombard Risk has been working with several financial institutions to implement REFORM for transaction reporting for Dodd-Frank Act AND European Market Infrastructure Regulation (EMIR), the European equivalent to Dodd-Frank, integrating multiple front office trading systems and reporting swap data to the DTCC global trade repository – with acknowledgements from the DTCC and reconciliation of client trade book.
- 12th October 2012: Dodd-Frank Act effective reporting date for Interest Rate and Credit Swaps
- 28th February 2013: Dodd-Frank Act effective reporting date for FX, Commodities and Equities asset classes
- 15th March 2013: EMIR adopted technical standards were published in the Official Journal on 23rd February 2013 and entered into force on 15th March 2013
- 23rd September 2013: EMIR reporting start date (interest rate and credit derivatives) if a trade repository is registered for these asset classes
- 28th February 2013: deadline of Dodd-Frank Act for FX, commodities and equities
U.S. market share continues to grow
London, UK – 25th February 2013: Lombard Risk Management plc (LSE: LRM), a leading provider of integrated collateral management and liquidity, regulatory, transaction and MIS reporting solutions for the financial services industry, is pleased to announce Richard L Ferrari joining as Managing Director, Americas and Cliff van Tonder as Director of Global Alliances.
John Wisbey, Chief Executive Officer, Lombard Risk commented: “Any serious technology company needs to have a strong presence in North America, and our growth experienced in the U.S. marketplace is quite notable – currently we are the largest provider of bank regulatory reporting for foreign banks in the US, and the third largest for US domestic banks.”
Mr. Wisbey further added: “To further strengthen our market position in North America, we recently introduced several new solutions as well as add on modules to our existing products which have been receiving strong accolades. Quality management and further development in this region will be key to our continued success.”
Richard L Ferrari joins as Managing Director, Americas in New York to manage the ongoing expansion of Lombard Risk in North America. Rick is a seasoned technology executive with more than twenty years’ experience in enterprise sales and marketing. He has a strong financial technology background in risk management, operations, trading and back office and a proven track record of delivering results for businesses providing risk and regulatory solutions to financial institutions around the world, including: FRSGlobal, now part of Wolters Kluwer; Calypso; Infinity/SunGard, where he was MD, Americas of the Credient credit product; Misys and Comshare.
Cliff van Tonder rejoins Lombard Risk in a newly created role as Director of Global Alliances to identify, forge and manage mutually beneficial strategic partnerships globally. Strategic alliances play an important role in Lombard Risk successfully providing and supporting risk and regulatory solutions around the world. Cliff has held a number of senior executive positions and has extensive global experience within the banking and B2B technology sectors. He returns to Lombard Risk from SOFGEN where he had responsibility for all aspects of European operations, including central Asia and Russia.
Second major building society in a matter of weeks to replace its incumbent regulatory reporting system with REPORTER
London, UK – 21st February 2013: Lombard Risk Management plc (LSE: LRM), a leading provider of integrated collateral management and liquidity, regulatory, transaction and MIS reporting solutions for the financial services industry, is pleased to announce that the West Bromwich Building Society has selected Lombard Risk REPORTER to automate their regulatory reporting.
REPORTER is a fully scalable regulatory compliance solution widely used by building societies and banks throughout the UK. The system keeps pace with regulatory requirements, automating end-to-end from data collection to electronic output, so providing the ideal solution for all automated regulatory reporting requirements.
The West Bromwich Building Society is a leading regional building society based in the West Midlands, and the 6th largest in the UK with more than 500,000 members.
John Wisbey, Chief Executive Officer, Lombard Risk stated:
“West Bromwich represents the second major building society since the New Year to move to REPORTER and we are delighted to have them as our newest client.
Adherence to the new EBA Common Reporting COREP regulations, including Large Exposures, Liquidity Coverage and Net Stable Funding, as well as existing FSA and Bank of England reporting is a major challenge for financial institutions of all sizes.
With our solution clients can be assured of compliance knowing that Lombard Risk is committed to being the global leader in regulatory reporting.”
Robin Bridge joins Lombard Risk from Logica/rFRAME as director of regulatory compliance
Robin Bridge joins Lombard Risk in the role of director of regulatory compliance, as part of the senior management team responsible for the highly successful regulatory reporting solution REPORTER, used by more than half of UK banks to meet local regulatory demands, especially the latest EBA Common Reporting (COREP).
John Wisbey, CEO, Lombard Risk says: “Robin Bridge joining as a director of our regulatory compliance business further strengthens our senior team for that business. He has immense experience of the regulatory reporting world from his time at CMG and Logica, and adds to the management depth of our team in Europe at a time when there has been and is likely to be a lot of change on the regulatory front. We are delighted he has joined.”
Robin Bridge, Director Regulatory Compliance comments: “Banks are experiencing significant change – particularly in the area of regulatory compliance – and I am pleased to be joining Lombard Risk whose suite of products is well-positioned to enable firms to meet this ‘new world’.
Firms need reliable yet flexible solutions to cope with the ongoing change, and I will be working with the team at Lombard Risk to provide those. ”
Robin has more than 30 years’ experience in product development, project and programme management, the majority of which has been in the financial services sector. Prior to joining Lombard Risk he was with Logica for more than 13 years, where he was the line of business manager responsible for the company’s regulatory reporting solutions in the UK and Ireland, rFRAME.
- Federal Reserve Bank of NY presents
- Rich Dreiman, Bank of America, appointed user group Chairperson
Lombard Risk Management plc, a leading provider of integrated collateral management and liquidity, regulatory, transaction and MIS reporting solutions for the financial services industry, recently hosted its Regulatory Compliance User Group conference in New York City. The user group is an organization representing banks around the country that use Lombard Risk’s innovative software to facilitate their US and Canadian regulatory reporting requirements.
John Wisbey, Chief Executive Officer, Lombard Risk commented: “With the costs of regulation being so much higher than in the past and with technology innovation greater than ever, we constantly need to strike a balance between thought leadership and giving our clients what they are looking for.”
Highlights of the user group function included:
- Kenneth Lamar, Senior Vice President Statistics Function at The Federal Reserve Bank of NY, spoke to the users on challenges in US regulatory reporting;
- Appointment of Chairperson, Rich Dreiman, Vice President at Bank of America, to the user group committee; and
- Insight into Lombard Risk’s future product design and development roadmap of the enhanced regulatory reporting solution.
Vincent Raniere, Managing Director, Regulatory – Americas & APAC of Lombard Risk commented: “Our user group events have provided an ideal situation for users to interact with other finance and reporting professionals from various international banks and financial institutions. Many of our clients have been utilizing our software for over 20 years; gathering at these events further solidifies our strong partnership.”
LONDON, UK – 10th January 2013: Lombard Risk Management plc, a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, is pleased to announce that one of the UK’s leading building societies has selected Lombard Risk REPORTER to create a consolidated regulatory and MIS reporting solution.
Lombard Risk’s REPORTER is a fully scalable regulatory compliance solution widely used by building societies and banks throughout the UK. The system keeps pace with regulatory requirements, automating end-to-end from data collection to electronic output, so providing the ideal solution for all automated regulatory reporting requirements.
John Wisbey, Chief Executive Officer, Lombard Risk says: “We are delighted to welcome this important building society to our extensive client community. Selection of Lombard Risk by this building society underlines our position as the ‘vendor-of-choice’ in this sector. We have both the software and the experience to automate regulatory reporting for major building societies – this includes computation and reporting for retail, mortgage and treasury operations, and covers any aspect of the FSA’s and Bank of England’s requirements, ranging from statistical reporting to the liquidity regime and also mortgage reporting.”
After a thorough selection process the building society, one of the largest in the UK, identified Lombard Risk as:
- Specialists in the regulatory environment with proven experience of delivering to high volume retail firms
- Offering a “tried & tested” system with a significant and satisfied user base – and
- Providing a reliable multi-discipline solution for regulatory calculation, reporting (including MIS) and electronic submission.
Building societies are regulated by the Financial Services Authority (FSA), under the Financial Services and Markets Act 2000. The role of the regulator is to ensure societies are run in a safe and prudent manner. The Lombard Risk REPORTER solution was selected by the building society to enhance all of their existing and new reporting processes – including the new EBA Common Reporting COREP regulations, including Large Exposures, Liquidity Coverage and Net Stable Funding, as well as existing FSA and Bank of England reporting.
The society also recognised the value of the regulatory update service provided by Lombard Risk, which ensures that REPORTER is maintained to meet the latest regulatory requirements now and as they arise, keeping the firm compliant. This service is provided by the team of regulatory business matter experts at Lombard Risk and included in the license agreement.
Robert Markham, Head of Sales, Regulatory Compliance – EMEA, Lombard Risk commented: “Rapid implementation and supporting client referenceability are key selection criteria to successful financial services institutions and once more we are delighted to be selected ahead of other providers in this space.”
London 21st November 2012. Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, is pleased to announce ComplianceASSESSORTM – a powerful compliance and audit application designed to enable firms to determine, achieve and maintain compliance with all applicable laws and regulations irrespective of jurisdiction.
As a consequence of the financial crisis firms, more than ever, are faced with a plethora of regulations as governments seek to regulate as a means of protecting individual economies. As a result, a considerable amount of management time is spent in trying to keep up with the pace of regulatory change and addressing regulatory demands, whilst having less and less certainty about the level of enterprise or departmental compliance. Regulatory risk, being the risk of non-compliance and the repercussions that may follow, is now a major challenge and of serious concern for institutions. ComplianceASSESSORTM has been launched to address this need.
- David Wilford joins Lombard Risk as director of compliance products
In conjunction with the launch of ComplianceASSESSORTM, Lombard Risk is delighted to announce the appointment of David Wilford as director of compliance products. David has over 35 years’ experience, primarily in the areas of risk management and regulation, and will head up the dedicated ComplianceASSESSORTM team as its product director. Over the last 10 years David has been involved in the interpretation and implementation of the Basel II/III Accord as reflected in the EU CRD and subsequently the FSA Prudential Sourcebooks. He has also been advising banks on the adequacy of their risk governance frameworks to address these and other regulatory requirements and implementation issues.
John Wisbey, CEO, Lombard Risk commented: “Our clients look to us for solutions to all their regulatory needs and an increasingly important part of that is to ensure that their firm as a whole is meeting, and/or working towards meeting, all aspects of compliance. ComplianceASSESSORTM has been designed to show senior management how a firm complies and continues to comply with regulations. It addresses the new approach to supervision by providing a means of assessing the state of compliance with all applicable regulations at business unit and regulation level – irrespective of jurisdiction – and addressing deficiencies through appropriate action plans.
More importantly, dashboards and reports enable senior management to identify deficiencies in compliance anywhere within their organisation and take appropriate action, a valuable tool given the regulators’ intention to make executives collectively and individually responsible for non-compliance.”
David Wilford added: “With governments seeking to impose further regulations as a means of stabilising and protecting economies, and the regulators taking a more intrusive approach to supervision, it is clear that many compliance and audit functions will come under enormous pressure, possibly to breaking point, without investment in resources and appropriate applications.”
David is presenting “The challenges of compliance in the new regulatory framework” at the British Bankers’ Association annual risk management conference on 27th November. Read more >>>
Join David on the Lombard Risk ONLINE seminar “Addressing regulatory risk” on 5th December. Read more and register online >>>
Lombard Risk delivers REPORTER EBA COmmon REPorting (COREP) solution: COREP calculation engine and reports
LONDON, UK – 5th September 2012: Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, is pleased to announce delivery of European Banking Authority (EBA) COmmon REPorting solution, complete with regulatory calculations and reporting templates.
Lombard Risk REPORTER is a fully scalable solution designed for regulatory compliance at branch and/or head office level, with global coverage, with detailed supervisory computations including all Basel III capital and liquidity calculations. Streamlined integration to multiple source systems is enabled by its rich ETL functionality, and stress testing and scenario analysis, now part of the regulatory scene, by Lombard Risk’s LISA solution. Lombard Risk is the market leader in the United Kingdom (with over 40% of the regulatory reporting market), holds a significant market share in many countries in Asia and Europe – plus (outside of simple spreadsheet solutions offered) services more banks in America than any other regulatory reporting vendor.
Lombard Risk has been providing COREP solutions to European firms since 2006. The experience and knowledge gained in doing this has proved to be invaluable in helping us to gain a clearer and earlier understanding of the full implications of the regulator’s definitions and process.
With respect to the EBA COmmon REPorting requirements, COREP, and associated returns, Lombard Risk REPORTER has been released to some customers in August and is already being installed for data analysis and testing. Functionality now being distributed includes all the templates which are in consultation at this time including those for:
- Large Exposures (LE)
- Liquidity Coverage (LC)
- Net Stable Funding (NSF) and
- Leverage Ratio (LR) requirements.
Deployment project work is now focussing on computation in new COREP, from client raw data, with attention concentrating on own funds calculation in Lombard Risk REPORTER under Basel III, and also credit and market risk requirements. Our implementation work started with Lombard Risk’s delivery of a clear brief regarding the data requirements for EBA reporting, and is now therefore moving on to receiving client data into the software, and proving computation results for client acceptance testing. Clearly, Lombard Risk will be updating our market delivery of REPORTER computation and reporting software as EBA reporting rules become finalised. Implementations that are already under way will be significantly simpler to adjust when rules are finalised.
The work carried out to prepare for EBA COmmon REPorting will also help firms meet the January 2013 Basel III deadlines to implement best practices in relation to monitoring, stress tests and MIS. The Lombard Risk REPORTER solution provides clients with a single, strategic, ‘open’ solution to meet ALL regulatory demands AND create a unique, central repository of regulatory-ready data from which to create management information, business intelligence and ad-hoc reports as required.
Join Lombard Risk at the 5th in a series of REGULATORY COMPLIANCE online business briefings on 12th September – looking at why data transparency is so important. Visit our website for more information and to register. http://www.lombardrisk.com/events/regulatory-compliance-seminar-acheiving-transparency-as-a-regulatory-tool-online-event >>>
Attendees provided valuable insight on Title VII’s global regulatory impact
LONDON, UK – 30 May 2012: Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, on the 7th of May participated on a panel of experts at the 2012 BAFT-IFSA Annual Conference in Miami, Florida. The overall theme of the event was ‘Accelerating Change in Global Banking’, making Lombard Risk’s subject matter quite timely.
Margaret Bailey, Sales Director – America of Lombard Risk, shared her insights on the potential regulatory impact that the Dodd-Frank Act Title VII will most likely have on the global banking community.
Ms. Bailey explained how two regulators – the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) – were defining a swap reporting regime to collect data from financial institutions for real-time public dissemination as well as confidential regulatory use. The reporting regime will provide price and volume transparency as well as market oversight in order to enforce position limits and track systemic risk, with an overall goal of preventing a reoccurrence of the ‘financial crisis’.
Ms. Bailey commented: “The regulators are demanding all information reported ‘as soon as technologically practicable’ for swaps executed on and off the swap market. There is a significant focus on ‘real-time’ which may cause ‘real issues’ for firms with silos of data.” She continued: “The SEC has defined this as ‘real-time’, but added a caveat of ‘in no event later than 15 minutes after the time of the execution’.”
Ms. Bailey further stated: “We do not see this as a U.S.-problem only. European regulators are on the same track, with EMIR and MiFID2 expected to be operational towards the end of 2013. The Dodd-Frank regulations affect European and other foreign banks in the U.S. that are active in derivatives.”
The swaps that are impacted by this regulation are defined as:
- A counterparty to a trade is a U.S. person OR
- The trade is cleared in a U.S. Derivative Clearing Organization OR
- The trade is executed on a U.S. Swap Execution Facility or Designated Contract Market
While this appears all encompassing, Ms. Bailey closed her presentation by illustrating a scenario whereby:
- “an English trader, working for a French bank, is on holiday in America, when she pops into her U.S. branch to finalize a trade between an Italian and Swiss company”
She noted: “This scenario would fall within the regulatory definition. It wasn’t that the trade was executed with a U.S. counterparty, rather it was purely that the trader was physically IN the U.S.”
Complementary Webinar: REGISTER ONLINE
May 31st: Dodd-Frank Act Impact on Swap Market covering in detail the regulatory impact on the now clearly defined participants. STEP-BY-STEP ANALYSIS of the implications of Title VII on swap dealers, major swap participants and eligible contract participants. DETAILS and REGISTER…
BAWAG P.S.K., one of the largest banking groups in Austria, selects Lombard Risk’s COLLINEfor global collateral management
LONDON, UK – 24th April 2012: Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, announces that BAWAG P.S.K. has selected COLLINE as its strategic global collateral management solution.
BAWAG P.S.K. is one of the largest banking groups and one of the leading retail banks in Austria. Headquartered in Vienna, BAWAG P.S.K. will be using COLLINE to manage the growth it is experiencing in its collateralised trading and will meet emerging regulatory demands.
COLLINE is a state-of-the-art, web-based collateral management and clearing solution designed by experienced business practioners for end-to-end, cross-product (OTC derivatives, Repos and Securities Lending) collateral management. It provides a consolidated solution for mitigating credit risk while satisfying the growing demand for multiple global entities, cross-product margining, Central Counterparty Clearing (CCP), optimisation, master netting, MIS reporting and electronic messaging.
Wolfgang Hanzl, Head of Operations at BAWAG P.S.K., commented:
“Automating the management of our collateralised business will enable us to use collateral most efficiently and provide our clients with an accurate and reliable service. Plus, BAWAG P.S.K. will benefit from better risk management and enhanced regulatory compliance”
BAWAG P.S.K. undertook a detailed selection process before choosing COLLINE – decisive factors included strong local references and a proven, swift time-to-market. COLLINE clients can be up-and-running as quickly as 3-6 months and seeing a return on investment within the first 12 months. BAWAG P.S.K. is planning for implementation in the head office in Vienna to be live by September 2012.
Martin Heraghty, Sales Director EMEA, Lombard Risk commented: “Lombard Risk is very pleased to welcome BAWAG P.S.K. to its continually expanding customer base. This is now our third COLLINE implementation in Vienna, and part of an even larger client base across the German-speaking region, where we see more future growth in the coming years. COLLINE is now the collateral management system of choice for industry professionals globally.
About BAWAG P.S.K. – http://www.bawagpsk.com/
With total assets of €41.1bn the BAWAG P.S.K. Group is one of the largest banking groups in Austria and one of the leading retail banks for the middle-income market.
Its mission is to be a cutting-edge universal financial service provider with profound market expertise, comprehensive individual customer service and innovative products. With more than 330 BAWAG branch offices and more than 1,300 post offices, the BAWAG P.S.K. Group operates the largest centrally managed financial distribution network in Austria. It is also the leading provider of payments services in Austria.
30th March 2012: Lombard Risk Management plc (LSE: LRM), a leading global provider of integrated collateral management, liquidity and regulatory reporting and compliance solutions for the financial services industry, is pleased to announce that it has signed three contracts this month with new clients for its COLLINE® collateral management software. In addition, the Company has signed an extension to its existing COLLINE contract with a German bank to include Central Counterparty Clearing (“CCP”) functionality.
The new clients are a leading custodian bank in the United States, Bank für Arbeit und Wirtschaft AG in Austria (“BAWAG”) and a leading Swedish financial institution. The contract extension is with Dekabank in Germany. The four deals will bring combined estimated first year revenues of £1.1million. John Wisbey, CEO of Lombard Risk, commented: “We are delighted to have won the additional contracts for COLLINE with these prestigious firms. The addition of Repo and Securities Lending modules to COLLINE was a major factor in winning one of these deals and we believe these modules will allow us to generate useful additional revenue in the coming year. We expect to be able to name the U.S. custodian bank once it is live with COLLINE. We are also delighted to have extended our reach in the German speaking world and in Scandinavia. We now have three of the top Austrian banks and three of the top German banks as clients for COLLINE.”
COLLINE® is a state-of-the-art, web-based solution designed by experienced business practitioners for end-to-end, cross-product (OTC derivatives, Repos and Securities Borrowing and Lending) collateral management – designed to assist firms in handling the increase in collateralised trades and meeting new regulatory demands. It provides a consolidated solution for mitigating credit risk while satisfying the growing demand for multiple/global entities, cross-product margining, Central Counterparty Clearing (CCP), optimisation, master netting, MIS reporting, dispute management and electronic messaging.
Lombard Risk REFORM for Dodd-Frank Act Title VII, Regulation of OTC Swaps markets
- July 2012: CFTC and SEC deadlines for real-time reporting
LONDON, 21st February 2012: Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading global provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, addresses Title VII of Dodd-Frank Act with its Dodd-Frank Act Engine solution.
The Lombard Risk Dodd-Frank Act Engine solution is designed to address Title VII “Wall Street transparency and accountability – regulation of the OTC swaps markets” issue. This requires reporting swap data throughout the lifecycle of the trade providing real-time public dissemination (for price and volume transparency) and confidential regulatory use (to help conduct market oversight, enforce position limits and track systemic risk). The deadline for the first set of financial products covering CDS/IRS is July 2012, with other asset classes (e.g. Equities, Commodities and FX) to follow later in the year
Lombard Risk has been working closely with several large global banks in the United States and Europe to analyse the impact of this regulation on their businesses. As a result, Lombard Risk has developed a Dodd-Frank Act Engine solution to enable firms to meet the regulatory requirements relating to Title VII.
Nick Davies, Chief Technology Officer of Lombard Risk explains: “The regulators are demanding all information reported “as soon as technologically practicable” and there is significant focus on real-time which may cause real issues for firms with silos of data. The Lombard Risk Dodd-Frank Act Engine is a rules-based, workflow technology and software solution that meets both real-time and event-driven reporting to the regulators, automatically collating and mapping reportable data from different source systems, keeping firms that use the solution compliant with SEC and CFTC rules and giving added benefits for internal management information and reporting.”
John Wisbey, Chief Executive Officer of Lombard Risk says: “As a result of our quality work and valued experience in the regulatory and collateral management areas with our U.S. clients, they turned to us as their solution provider to this new regulatory issue. We do not however see this as a U.S. problem only – European regulators are on the same track, with EMIR and MiFID2, expected to be operational towards the end of 2013, and our technology is designed with that in mind. The Dodd-Frank Act regulations affect European and other foreign banks in the U.S. that are active in derivatives and, as the top supplier of regulatory reporting solutions to foreign banks in the U.S., we believe we are best placed to serve our clients’ needs.”
Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, announces Ghana Bank International plc’s (GHIB) replacement of its legacy regulatory reporting system with Lombard Risk’s REPORTER to meet regulatory demands.
GHIB selected REPORTER, Lombard Risk’s regulatory compliance solution, to automate the firm’s regulatory reporting by interfacing to the bank’s Temenos T24 core banking system. The execution of the regulatory calculation pertaining to GHIB’s business lines for Capital, Liquidity, Large Exposures and Statistical reporting, has allowed for accurate generation and submission of the reports which meet the FSA, Bank of England and HMRC regulatory requirements.
It was necessary to replace the existing system at GHIB when it became apparent that it could not meet the new demands of the FSA’s liquidity regime which came out in 2011. With more regulatory changes imminent, including COREP, FINREP and Basel III, the bank decided to implement a strategic solution now in order to keep in line with the ever-evolving regulatory environment.
Mark Arthur, Senior Manager of Ghana International Banks says “Lombard Risk provided a professional service which ensured that our project objectives were fully met and were delivered on time and to budget. Consequently we have already seen significant return-on-investment. REPORTER is perfectly suited to our technology needs and seen as the strategic regulatory solution by the bank.”
Mark Jeffrey, Principal Consultant, Lombard Risk, who led the successful implementation, says “Lombard Risk consultants worked closely with GHIB to achieve mutual objectives and we are delighted that GHIB are receiving the full benefit so soon. As a result of automating their regulatory reporting through REPORTER, the bank’s processes have been streamlined which has provided them with significantly enhanced data analysis and sophisticated ad-hoc management reporting.”
LONDON, UK – 19th December 2011: Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, announces that it has acquired the regulatory reporting business of SOFGEN for a total consideration of
US$ 4,250,000 payable in a combination of cash, loan notes and equity.
The acquired business is profitable, and in addition the Board expects appreciable revenue synergies over and above the sum of the two businesses at present. The equity component of the transaction will be satisfied by SOFGEN subscribing for 2,327,556 new shares in Lombard Risk at 11.75p, the price prevailing on the date on which a letter of intent was signed. Application has been made for the admission of these new shares to AIM. Following the transaction the number of Lombard Risk shares in issue will increase from 206,926,786 to 209,254,342.
The main part of the business acquired, which in the past was known in the U.S. regulatory market as IDOM USA, is the United States and Canada regulatory reporting product REG-Reporter® which has a very strong client base in North America including top banks such as Bank of America and Royal Bank of Canada.
The transaction will make Lombard Risk:
- The top provider of regulatory reporting products to foreign banks in the United States
- The third largest provider (as measured by assets reported on, not number of institutions) of regulatory reporting to domestic banks in the United States after FIS and Jack Henry
- and with a bigger presence than all of Lombard Risk’s international competitors combined.
Lombard Risk already has a major business in regulatory reporting through its existing REPORTER product which is used globally including in the United States. The combined business now has over 250 clients for bank regulatory reporting around the world. Lombard Risk has the largest market share of any regulatory reporting product used by banks in the United Kingdom – with around 130 UK clients.
As well as the UK and the Americas, Lombard Risk also has extensive coverage of Asia Pacific markets with regulatory reporting solutions in use in Singapore, Hong Kong, Japan, Indonesia, Thailand and other Asian countries. Lombard Risk recently announced a contract win for Chinese regulatory reporting, and has Indian and Korean regulatory reporting under development.
Lombard Risk also has products live for liquidity reporting and regulatory stress testing, and is becoming the vendor of choice among top banks for its COLLINE® collateral management and clearing product. Regulatory initiatives such as Dodd-Frank have already won business for the company.
Commenting on the acquisition, John Wisbey CEO of Lombard Risk said: “This is an important strategic breakthrough for us, as it gives critical mass in the North American market place, both for foreign and domestic banks in the United States. We already had this for collateral management but we now have it for regulatory reporting. The REG-Reporter business and its management are well respected in the market, and it has built an impressive and very loyal client base. As the market moves away from having multiple suppliers in different countries, this acquisition will allow us to serve our global clients better with much more ability to conclude deals in multiple countries and continents. We understand this business and its business model extremely well, so we are absolutely ‘sticking to the knitting’ with this acquisition.”
Vincent Raniere, who, following the acquisition, will be Managing Director and Head of Regulatory – Americas for Lombard Risk, commented: “My team and I are very pleased for REG-Reporter to have the backing of a global software company which understands regulatory reporting so well. Our technology team will have access to a much deeper technology organisation which is already very experienced in regulatory requirements, web technology, XBRL, workflow and the requirements for fast and scalable performance, while at the same time we will have the ability to extend our international reach greatly and to offer more international regulatory services to our U.S. clients”.
Asia Pacific reporting hub: Singapore, Hong Kong, Japan, Indonesia and China
Meets CBRC, SAFE and PBOC regulatory demands in China
LONDON, England – 30th November 2011: Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, announces an international financial services provider’s decision to expand its use of Lombard Risk’s regulatory reporting solution, REPORTER, to meet its regulatory obligations in China.
The group has a widely distributed user base with multiple branches across Asia. After successfully completing the replacement of a core banking system and creating a powerful data warehouse in Singapore, they reviewed the range of regulatory submission processes that were in use at several branches (Hong Kong, Japan, Indonesia, Singapore and Shanghai) and selected Lombard Risk to provide an automated and standardised solution across its regional operations.
Lombard Risk’s regulatory solution for Shanghai will meet the three key regulators’ demands in China: CBRC, SAFE and PBOC – enabling the firm to prepare reports for its “full bank branch” operations in China. The submissions to the Chinese regulators have previously been made through a combination of manual processes and spreadsheets, and Lombard Risk’s REPORTER solution will automate this process by calculating the returns using data in the Asia Pacific data warehouse ‘hub’ in Singapore and submitting them electronically.
William Tong, General Manager Asia Pacific, Lombard Risk explains: “The firm recognised the burden placed on its operations to monitor the regulators’ demands (which are on the increase post financial crisis), collate the data from multiple internal systems, calculate the information required and generate and submit the reports. The firm is streamlining and automating processes across the whole of their operations, and Asia Pacific branches will enjoy accurate and timely regulatory submissions from Lombard Risk’s REPORTER solution.”
John Wisbey, CEO of Lombard Risk, commented: “Lombard Risk has an important commitment to Asia, with our development centre in Shanghai and more than 130 people employed in the region. We have invested heavily in regulatory reporting in Asian countries and Chinese regulatory reporting is an important addition to our portfolio. As well as our country specific solutions in individual Asian countries, we aim to be the regional supplier of choice for international banks in the region, as we are in this case.”
Lombard Risk has had a long history of business in Asia, since 1989. It has 3 office locations in Asia, with more than 130 employees: Sales / Support offices in Hong Kong and Singapore, and a sizeable R&D centre in Shanghai headed up by Nick Davies, CTO. Lombard Risk has an extensive client base, many with multi-country implementations, enjoying global solutions and local knowledge.
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- A jump of 15 places in Chartis report
- “leading the supplier table” in Association of Foreign Banks MIS survey
- 10% increase in revenue published in interim report
LONDON, England – 15th November 2011: Lombard Risk Management plc (LSE: LRM) (“Lombard Risk”), a leading provider of integrated collateral management and liquidity, regulatory and MIS reporting solutions for the financial services industry, acknowledged by analyst and industry body surveys – and growth reflected in firm’s interim reports.
Two key market-recognised annual surveys – Chartis and AFB – acknowledged Lombard Risk’s significant role in providing financial institutions around the world with integrated risk and regulatory solutions: COLLINE collateral management, LISA liquidity analysis, REPORTER and MIS regulatory and management information.
Chartis Research’s RiskTech100 2011 report, a comprehensive annual study of the top global technology firms active in risk management, describes Lombard Risk as a “significant riser” as it moves 15 places up from last year. Register for the full report from Chartis
This follows a report from the Association of Foreign Banks (AFB) Management Information Systems (MIS) survey which placed Lombard Risk at the top of the supplier table for regulatory reporting systems. Download the full report online / read press release.
Lombard Risk attributes this rise to the firm’s steady organic growth, with its integrated risk and regulatory product range being key contributors. John Wisbey, Chief Executive Officer, explains: “Lombard Risk has achieved this rise in ratings purely through organic growth, whereas several other vendors have seen their ratings rise only due to acquisitions which will inevitably take time to integrate.
We have remained very focused through the year and have benefited from our ability to expand our global operations and launch new integrated and web-enabled risk and regulatory product offerings. This positions us well for the changes that are happening in the market driven in many cases by regulatory change in the US, Europe and other parts of the world.”
The financial market is still unsettled and faced with more risk management and regulatory compliance challenges ahead, which require good technology despite pressure on overall budgets. Lombard Risk has seen considerable growth and expansion, providing systems to global financial institutions for collateral management, liquidity analysis, regulatory and MIS reporting. Lombard Risk’s integrated, web-based product suite was announced in August 2011 and significant sales of both risk and regulatory solutions have resulted in positive interim results. Interim reports available online.
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