This highly anticipated video features the remarkable collaboration across the financial and regulatory ecosystem participants to work toward a true machine executable regulatory environment. At the 35 second mark you can see the celebration featuring our Head of Technical Architecture – Malcolm Arnold as the challenge to ingest a rule, make it machine readable, change the rule and have it flow all the way through is successful!
In November/December 2017, Lombard Risk participated in the Financial Conduct Authority (FCA) and Bank of England (BoE) two week TechSprint to explore the potential for model-driven machine readable regulation. The TechSprint was the first stage of a programme of work designed to bring start-ups, regulated firms, technology providers and academics together to discuss and design technological solutions to this challenge.
Lombard Risk, together with the FCA and BoE are exploring how technology can be used to link regulation, firms’ policies and standards together with financial institutions’ transactional databases.
This would open up the possibility of a model-driven and machine readable regulatory environment that could transform and change the speed with which the financial services industry understands, interprets and then reports regulatory information.
Firms would be able to map their regulatory requirements directly to the data that they hold, creating the potential for automated, straight-through-processing of regulatory returns.
This would benefit both firms and regulators, by improving the accuracy of data submissions and simplifying and accelerating the implementation of regulatory changes.