IMD & IRD Awards 2023: Most innovative regulatory solution (transaction reporting) — S&P Global Market Intelligence Cappitech

Overview

Cappitech provides a cross-asset, global trade and transaction reporting solution for financial and non-financial firms. It allows users to monitor and manage compliance across several regulatory regimes via a single, integrated offering. Over the last year, Cappitech’s client base has more than doubled; it now services over 550 clients, processes more than 10% of EU trading volumes, and is responsible for reporting the majority of Securities Financing Transactions Regulation (SFTR) flows.

The solution

A cloud-based, cross-regulation platform, Cappitech helps financial institutions to comply with regulatory mandates via a single dashboard. It provides out-of-the-box connectivity to all main approved reporting mechanisms (ARMs) and trade repositories (TRs) and covers a wide range of regulatory regimes. The dashboard provides data visualization for regulatory reporting and analysis and helps financial market participants to both meet their compliance obligations and derive additional insights to improve their financial performance.

With regulators increasingly conducting data quality checks, Cappitech also includes several reconciliation tools to help clients ensure the accuracy and completeness of their data. Examples include client vs. Cappitech recons, end-of-day TR recons, Mifid national competent authorities (NCAs) report recons, and customized recons.

Secret sauce

Cappitech stands out thanks to the multi-jurisdictional nature of its platform, supported by a team of specialists across the globe, enabling clients to work with a single provider for several regulatory reporting regimes, without compromising on local expertise. Cappitech also takes a proactive approach to building relationships across the market and leading initiatives, such as the European Market Infrastructure Regulation (EMIR) working groups, to reduce market risk for regulatory reporting.

Recent enhancements

• Finalized connectivity with trade repository Regis-TR for FinfraG reporting, with end-to-end connectivity for submissions and a dashboard for exception management handling
• Extended the coverage of the UTI Connect solution to EMIR, reduced unique trade identifier (UTI) pairing breaks and made it easier to correct and replace incorrect UTI details
• Expanded managed services with a more comprehensive stack assessment and dedicated onboarding
• Won multiple clients for the Commodity Futures Trading Commission (CFTC) reporting rewrite, with all clients live in user acceptance testing (UAT) environment and connected to Depository Trust & Clearing Corp. (DTCC) ahead of go live

Future objectives

• Preparing for new and updated regulations, which in 2023 includes the EMIR refit, as well as changes from the Australian Securities and Investments Commission (ASIC) and the Financial Services Agency of Japan (JFSA)
• Preparing for unique product identifier (UPI) enrichment following the CFTC’s announcement of the January 2024 deadline for market participants to start reporting UPIs to swap data repositories for credit, interest rate, foreign exchange, and equities swaps

Why they won

S&P Capital Market Intelligence’s Cappitech business wins the most innovative regulatory solution category in this year’s data awards on the back of its eponymous transaction reporting platform. Cappitech takes care of the heavy lifting associated with capital markets firms’ transaction reporting requirements, providing them with increased levels of automation, transparency and comfort in the knowledge that their mandates have been satisfactorily met, freeing them up to focus on their core functions.