Computational law and regulatory technology provider Droit has released a new Exchange Traded Derivates (ETDs) Reporting product for clearing firms to address increasingly stringent regulatory reporting requirements for accuracy and transparency.
“There is increased scrutiny around exchange-traded derivatives reporting. When audits occur, firms need to understand how decisions are made,” explains Brock Arnason, Founder and Chief Executive Officer of Droit, for RegTech Insight.
Many clearing firms still rely on outdated systems, making the reporting process labour-intensive and prone to inefficiencies. These systems frequently lack the transparency needed to trace decisions back to their regulatory origins. “Opaque systems will not be acceptable in the future, and firms are looking for the traceability and transparency that Droit provides,” adds Arnason.
Simplifying the Reporting Lifecycle
Droit’s ETD Reporting product aims to provide clarity and control over the reporting lifecycle. It offers tools to evaluate report eligibility, manage venue-specific obligations, and validate submissions both before and after they are filed.
A defining feature of the platform is its complete transparency and traceability into the decisions made, with visibility to the underlying regulatory source text where available. This visibility and quick validation results in faster remediation of errors. Firms are also able to complete reconciliation of the reportable aggregate positions against generated reports. Additionally, earlier access to rule updates allows for more testing and sandbox time to review and approve new or updated mandates.
“Our new ETD Reporting product establishes a unified quality assurance process across Exchange Traded Derivative reports,” said Blythe Barber, Head of Business Development, Americas at Droit. “By using Droit for completeness and accuracy checks, clearing firms can adopt a single global process, significantly reducing the operational burden of current manual methods. Front and middle office teams can fully focus on client opportunities, confident that reporting obligations have been fulfilled.”
Firms adopting the platform can expect more accurate reporting and faster error resolution. The product’s validation and reconciliation processes aim to reduce reliance on manual oversight, improving efficiency and allowing compliance teams to focus on higher-priority tasks. Faster remediation of errors also helps firms avoid penalties for misreporting while improving overall operational efficiency.
Preparing for the Future
The ETD Reporting product reflects a broader push in the industry toward automation and stronger regulatory alignment. While the initial focus is on high-risk reporting areas, such as those related to clearing, collateral, and margin, Droit plans to expand the product’s capabilities to support a wider range of listed instruments. This flexibility is intended to help firms adapt as regulatory demands continue to evolve.
As scrutiny on ETD reporting intensifies, firms require solutions that provide both clarity and control. “ETD Reporting marks a key step in our strategy to expand our regulatory reporting products to listed derivatives,” said Arnason. “Our clients have many regulatory reporting obligations across departments within their firms. By adding ETD Reporting to our product suite, we aim to provide one platform to advance global compliance and real-time controls, helping our clients navigate these challenges with confidence.”
Droit was just named a winner in this year’s RegTech Insight Awards for Best CFTC Reporting Solution for the second consecutive year.
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