Compliance software is needed more than ever as derivatives markets transform to comply with regulation while organizations that trade are facing a new set of data, valuation, risk mitigation and transaction reporting challenges, and changes in accounting standards. Those that work in energy markets have to adjust to booms and busts that cause wide swings in prices and productivity, all of which heavily impact margining and collateral decisions. Basel III is pressuring banks to make better capital withholding provisions. Firms that want to stay ahead have to revamp workflows, reassess IT infrastructures and rethink governance.
The opportunity for improved profits lies within the operations of the business itself – with the creation of a single source of data across the enterprise and breaking down silos within an organization, allowing for sharing of deep expertise up and down the enterprise.
Openlink stays at the forefront of regulatory reforms by working closely with regulators, clearing houses, service providers and trade data repositories in order to carefully address regulatory challenges faced by customers. Openlink offers a full suite of market-leading solutions to help organizations comply and keep pace with changing regulatory reporting requirements, including collateral management, swaps data repository, hedge accounting, SDR reporting, OTC clearing workflows and more.
Back-office processes are often implemented in an ad hoc way; relying on documents followed by individual team members. However, people don't always follow processes, or interpret the process in different ways – which can create unintended inconsistencies.
With Openlink you can visually map business process workflows via point and click configuration, and access any data (e.g. reference, trades, accounting) captured by the system for that workflow. Once created, business processes can be executed consistently and monitored in real-time for compliance.
The back office is increasingly in the spotlight, as it has been transformed by a tsunami of regulation and collateral management requirements aimed at mitigating counterparty risk and increasing transparency. The challenge is to fully meet these compliance obligations especially when it comes to reporting.
Openlink works closely with clients, regulatory agencies, clearing houses, clearing members, service providers and trade data repositories to keep pace with the rapidly evolving landscape. Openlink delivered a Dodd Frank Regulatory Compliance Reporting Package, CFTC Position Limits Monitoring, Swap Data Repository (SDR) Reporting, OTC Clearing Workflows and Margin Analytics for Cleared Swaps and is recognized as an enterprise solution for MiFID II reporting. All are available as plug-ins for new and existing implementations.
Individual trading groups often have specialized trading platforms for different asset classes with multiple back office counterparts. As a result, getting a consistent, timely, and integrated view of financial and operational results across the business requires significant manual effort. Regulation is driving the change to bring everything into a single platform – reducing manual extraction of data from each system for faster reporting.
Openlink’s trading and risk management platform covers the broadest range of asset classes in the industry. Our solution supports straight-through processing from the front office to the back office. Asset class coverage includes interest rates, CDSs, FX, equities, commodities and associated derivative products. Our platform is extensible to aggregate transactions from any upstream third-party specialized or legacy trading platform.
Regulations require companies to archive certain data and transaction details. In order to create the required audit trail, many firms find they need to add application layers to handle the requirements.
Openlink solutions feature audit capabilities that track execution dates and times, changes made to trade terms, confirmations, correspondences, valuation data, prices and clearing information. Also included are a variety of archiving capabilities that allow firms to archive and quickly access data in response to regulatory requirements.
With trades dispersed across multiple clearing venues, the ability of firms to net out with counterparties becomes challenging. Furthermore CCPs typically have a more restricted list of assets they are willing to accept as collateral.
Openlink's collateral management functionality supports both cleared and uncleared OTC derivative trades. It provides real-time information across credit support annexes (CSAs) terms for bilateral counterparties and central counterparties (CCPs) and counterparty netting agreements. Now firms can quickly decide on the most efficient use of collateral, and trade with counterparties who offer the most favorable CSA terms for the assets they are willing to accept as collateral. With full visibility of CSA terms, firms can establish contingencies to post additional collateral in the event of a downgrade to assets they are holding.
To learn more about how Openlink Solutions can work to improve ROI and streamline operations in your business, contact us for a free consultation or no obligation demo.