Sell-Side Technology Awards 2025: Best sell-side compliance product—S&P Global Market Intelligence Cappitech

Overview

Regulatory reporting across multiple regimes is a constant challenge for financial services firms that must meet existing regulatory requirements and adapt to new or changing mandates. Data is complex and large volumes must be aggregated, reconciled and standardized for reporting to trade repositories (TRs) and approved reporting mechanisms (ARMs). 

Cappitech delivers a single, global solution across multiple regulatory reporting regimes, including those under Mifid II, the European Market Infrastructure Regulation (EMIR), the Securities Financing Transactions Regulation (SFTR), the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), Canadian Derivative reporting, the Monetary Authority of Singapore (MAS), the Financial Services Agency of Japan (JFSA), the Hong Kong Monetary Authority (HKMA), the Australian Securities and Investments Commission (ASIC), and FinfraG.

The solution  

Cappitech’s cloud-based, serverless, cross-regulation software-as-a-service (SaaS) platform provides its more than 650 capital markets clients with cross-jurisdiction reporting support. Clients benefit from best-in-breed technology, reconciliation support, a user-friendly UI, data visualization services, and detailed analytics. Local expertise ensures Cappitech can monitor and adapt to regulatory reporting needs in any jurisdiction. Clients can access a single solution across regimes, reducing the resources and costs involved in meeting regulatory mandates.

Secret sauce  

• Availability of ancillary services, including UTI Connect (enrichment and sharing to reduce UTI pairing breaks), UPI enrichment (assistance for enriched UPI data points), over-the-counter (OTC) derivative reporting of power purchase agreements (PPAs), and reconciliation services
• Pricing: Typically, 70% total cost of ownership (TCO) cost-saving, alongside benefits of increased efficiency, improved accuracy, and reduced risks
• Ahead of the market in preparing for new/changing regulations
• Global expertise and community engagement to ensure best practices, and consistent workflow and rules interpretation

Recent milestones

• Implementation of multiple regulatory reporting changes, including CFTC Rewrite Phase 2, EMIR and JFSA
• Enhanced reconciliation services, including the option to overlay the eligibility rules of each regulation, ensuring datasets are correctly filtered
• Backward compatibility to allow firms to send values of previous technical standards that are converted for rewrites
• Created lifecycle management logic to manage event and action type definitions of trades

Future objectives

• Utilization of serverless GenAI technology to extend regulatory reporting offering and combine industry expertise with the latest developments in machine learning and statistical analysis
• Enhanced reconciliation processes by introducing workspaces, allowing users to configure what, how, and how frequently they reconcile. This will complement the firm’s current integration and platform capabilities with existing clients, as well as those clients who self-report, ensuring data accuracy and oversight.

Why they won

S&P Global Market Intelligence Cappitech follows up its pair of regulatory reporting wins in last year’s Waters Rankings and Buy-Side Technology Awards by emerging top in the best sell-side compliance product category of this year’s Sell-Side Technology Awards, thanks to its eponymously named regulatory reporting platform. Regulatory reporting requirements are critical for firms to comply with even though they do not provide them with an opportunity to differentiate themselves or generate revenue―essentially, they are a necessary cost of doing business. 

The data they need to compile and report to their respective trade repositories and approved reporting mechanisms tends to be complex, and must be aggregated, reconciled and standardized to ensure compliance. Firms also need to understand what exactly needs to be reported, when and to which entity, especially when it comes to the steady drip of new regulations entering the industry’s statute books, an area upon which Cappitech prides itself. 

There is value in establishing and maintaining focus on one’s core competency and not trying to be all things to all firms, a notion that Cappitech clearly understands, and one that has been well rewarded in these and other WatersTechnology awards over the years. Only a fool would bet against Cappitech again making the cut and joining next year’s winners’ circle.