With an increasing focus on data accuracy, transparency, and reporting from regulators, firms must be more introspective and proactive to ensure no risks fall between the cracks. Over the next two years, firms must be proactive by incorporating agile methodology into their regulatory and compliance control frameworks in anticipation of CFTC 2.0, SEC 2.0, IBOR, and eventually CSA 3.0.
One critical aspect of the new reporting standards about swap data reporting comes from the CFTC where reporting counterparties must reconcile their books and records against reports provided by a swap data repository (SDR). In the event of a discrepancy, firms will have seven business days to correct the error or omission. Firms will need to integrate agile methodology into their regulatory reporting frameworks to amend discrepancies between front-to-back office systems within such a short window.
While many firms have successfully implemented select agile concepts in the past, robust agile delivery models are severely lacking across the board. This article will discuss some of the challenges that firms can expect in the next two years and steps an organization can take to protect itself from regulatory risks by remaining agile.
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