10.04.2022

Duco Offers No-Code Solution for CFTC Rewrite

10.04.2022
Duco Offers No-Code Solution for CFTC Rewrite

Duco, a leading cloud-based data automation company, announced the successful rollout of its no-code solution to help firms meet the data quality requirements of the upcoming CFTC Rewrite. The Software-as-a-Service (SaaS), no-code platform provides firms with the agility they need to adapt to new requirements brought about by changes to derivatives reporting regulations.

The Rewrite introduces a number of changes to data and reconciliation requirements for firms reporting over-the-counter (OTC) derivatives trades to Swap Data Repositories (SDRs). These will require firms to remap their existing data processes, handle new types of data and accelerate the detection of errors in order to meet tighter reporting deadlines. For example:

  • Changes to reportable fields (a reduction from around 200 to 128) mean firms will have to remap their existing data processes
  • The addition of critical data elements such as the Unique Transaction Identifier (UTI) and Unique Product Identifier (UPI) introduces new data types for firms to handle
  • A move to T+1 for swap reporting and mandatory reporting of errors and omissions within seven days puts pressure on firms’ ability to identify and fix data quality issues

Phase 1 of the rewrite brings the bulk of these changes into effect on 5 December, 2022, with Phase 2 following in late 2023.

Duco’s CFTC solution provides firms with a fast, flexible way to aggregate, normalise and reconcile data for regulatory reporting. The data agnostic platform can ingest files from multiple systems and in multiple formats without the need for technical data manipulation. Duco’s proprietary Natural Rule Language (NRL) gives control over data quality checks to business users, making it possible for regulatory operations staff to quickly build and adapt controls without support from developers. This greatly reduces the time and effort required to remap existing processes to changing regulatory requirements.

This is of particular importance for the CFTC Rewrite, as firms won’t receive the working files until the Phase 1 go-live date of 5 December, and must then scramble to make adjustments to their processes to ensure they align with the requirements. There are also likely to be post-implementation tweaks, which on traditional systems would require a significant amount of development work to implement.

Duco CEO Christian Nentwich said: “Regulators are really hot on data quality right now. The CFTC Rewrite moves from a principles-based approach to something much more prescriptive. This is going to place a significant burden upon capital markets firms, many of whom are using inflexible legacy technology that requires hardcoding to remap existing processes to the new requirements. Additionally, they may not have the necessary data quality checks in place to ensure their data is timely and accurate in line with the stringent demands of the Rewrite. Customers who use our CFTC solution are safe in the knowledge that they can adapt quickly to these changes, including any last-minute surprises when the changes go live on 5 December, as well as meeting the demands of future regulations in a similarly agile manner.”

Source: Duco

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