BST Awards 2023: Best buy-side compliance product (regulatory reporting)—Droit Financial Technologies

Product: Transaction Reporting

Overview

Financial institutions are under pressure to comply with increasing and ever-changing trade and transaction reporting requirements. Global reporting regulations continue to evolve to support harmonization efforts and standards convergence. Institutions need confidence that their reporting process is robust and transparent across numerous jurisdictions. Droit’s Transaction Reporting service provides clients with a flexible infrastructure that allows them to make fast, accurate decisions to facilitate real-time compliance with global transaction reporting obligations.

Droit’s Adept platform enables our teams to meet multi-jurisdictional trade and transaction reporting requirements more efficiently. Since our initial engagement in 2015, working with Droit we have built an infrastructure that enables automated, repeatable, auditable decisions and that is updated as regulations evolve.”
Managing director, head of regulatory change and control solutions, Goldman Sachs

The solution  

Institutions have a succinct view of eligible reporting obligations based on an industry consensus interpretation of regulations. Droit’s Transaction Reporting product, built using the firm’s patented Adept platform, sits at two critical points in an organization’s trade and transaction reporting flow:

  • Eligibility to determine if a trade is in-scope for a reporting regime
  • Message generation to create and validate the required report message against regulatory and trade repository specifications prior to outbound submission

Secret sauce 

Droit provides transparent, real-time reporting eligibility decisions based on detailed knowledge of regulatory and infrastructure rules, with each decision traced through underlying regulatory source text. The firm’s Transaction Reporting service also provides structural validation errors in reports prior to submission or post-reporting assurance, evidencing correct decision-making for report submissions and message formation. Transaction Reporting provides clients with consensus-driven, regulatory decision-making that is in line with their industry peers.

Recent milestones

With growing complexity and speed of regulatory change, Droit has enhanced its platform to support wider logic and expose multiple fields and exceptions simultaneously. It has also helped its clients improve their return on investment with cloud-ready deployments and API enhancements.

Droit extended usability and traceability from the regulatory decision to the underlying digital library content. These changes allowed it to expand support to over 13 jurisdictions and deliver regulatory changes with significant lead time.

As we enter a period of regulatory updates and convergence on global standards, it is important that financial institutions use flexible infrastructure that allows them to rapidly respond to change and evidence their compliance. Being selected as the best buy-side regulatory platform not only validates our technology but is a testament to the value we bring to our clients.”
Brock Arnason, founder and CEO, Droit Financial Technologies

Future objectives 

  • Further reduction of integration costs through cloud infrastructure, intuitive UI/UX design, and high-quality engineering
  • Business insights through data visualization using Adept decisions, enabling better understanding of business and operational processes, and enabling new supervisory capabilities
  • Dynamic reference data and user-specific logic integration
  • Functionality that helps users connect at a granular level the regulatory changes that need to be implemented with various evidentiary artifacts, operational processes, and controls

Why they won

Droit wins its first ever Buy-Side Technology Award on the back of its Transaction Reporting service featuring its impressive Adept platform. Regulatory reporting has become an increasingly complex and laborious business process for buy-side firms to manage. Not only is it challenging for them to develop in-house the required technology and data processes to comply with a range of regulatory mandates, but understanding the minutiae of those mandates and translating them into technology and operational procedures is fiendishly complex. This is the domain of Droit, which specializes in helping the buy side meet all those regulatory imperatives by taking care of the interpretation and heavy lifting for them, allowing them to focus on their primary activity of managing investors’ money. Expect to hear a lot from Droit in the coming months and years.

 

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