Driving Change and Innovation in the Regulatory Reporting Industry

It’s now over a year since we completed the merger of IHS Markit, including Cappitech, and S&P Global. As part of S&P Global Market Intelligence, the integration has been one of the many initiatives we’ve focused on as we continue to grow and invest heavily in the development of new products and services.

Our client base continues to expand across all market participants, including banks, asset managers, hedge funds, and corporates. Our global presence and expertise in local markets have been a key differentiator, serving us well in strengthening our relationships with clients and partners.

In the last quarter, Cappitech actively engaged with clients and hosted several in-person events with our local teams in London, New York, Singapore, Sydney, and Hong Kong.

Moving forward in 2023, we are closely monitoring the latest trends in the industry to inform our product and service development decisions. We recognize that transparency is increasingly important to regulators, and we are fully committed to providing scalable and future-proofed products and services that meet both our clients’ and regulators’ needs.

The sheer number of refits and changes on the horizon coupled with the cost of maintaining in-house solutions, are making hybrid reporting solutions gain in popularity, particularly among Tier 1 firms. In our survey, 64% of respondents are taking a hybrid approach to regulatory reporting and 68% of these are Tier 1 firms. As the market continues to mature, the benefit of applying standardized approaches to regulatory reporting leads to significant risk reduction, fewer fines, and an easier implementation process.

We take pride in playing an essential role as an industry facilitator in regulatory reporting. This means we are laser-focused on supporting the industry as a whole, taking a leadership role in cross-market activities and supporting industry-wide learning and participation. As part of this, we are expanding our successful SFTR UTI pairing and sharing service to the OTC derivative market across EMIR (and other regimes) through our UTI Connect product.

Delegated reporting for dual-sided regimes continues to be a significant operational and regulatory pain point. Buyside firms, who have long relied on delegated reporting, are increasingly considering the need and value of bringing reporting back in-house so that they can ensure appropriate levels of oversight and accuracy.

A key focus for product development is on workflow management that is central to ensuring that our clients’ User Experience remains the industry gold standard. We also remain committed to enable our clients to benefit from advanced analytics tools to efficiently identify and solve exceptions.

Looking ahead, we anticipate new and changing regulations across multiple jurisdictions and understand that the pace of change is not slowing down anytime soon. We thank you for your continued support, and we look forward to collaborating on all areas of trade and transaction reporting.

Pierre Khemdoudi
About the author: Pierre Khemdoudi
Pierre Khemdoudi is Senior Vice President, Network & Regulatory Solutions at S&P Global Market Intelligence. Pierre oversees S&P Global Market Intelligence Cappitech. He has driven the implementation of the highly successful SFTR solution at S&P Global along with acquired and integrated Catena and Cappitech creating an industry leading Global Transaction reporting product suite. He has a proven track record in securities finance and DeltaOne internationally, delivering customizable, timely and accurate solutions for the investment management community. Pierre spent ten years at BNP Paribas Arbitrage in a number of senior positions across Paris, New York, Tokyo and London prior to joining our company in February 2013. These included, head of London securities finance trading and head of Tokyo securities lending. He began his career working in aerospace engineering.