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The Data Management Response to a Volatile Regulatory Landscape

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The data management response to a regulatory landscape that is volatile and uncertain should be strategic, agile and future proof. It should also consider technology options including cloud, machine learning and blockchain.

The need for a strategic approach to regulation at a time when US President Trump intends to repeal some financial legislation and the UK starts the process of leaving the European Union, was discussed during a panel session at last week’s A-Team Group Data Management Summit in London. The panel was moderated by regulatory financial specialist Selwyn Blair-Ford and joined by James Phillips, global head of regulatory strategy at Lombard Risk; Peter O’Keefe, an independent data management expert; Brian Sentance, CEO at Xenomorph; and Alessandro Sanos, market development manager, risk and enterprise Europe, at Thomson Reuters.

The speakers agreed that the response to today’s regulatory landscape must be a strategic and agile approach that reengineers existing systems and data silos to deliver data management infrastructure that is responsive to change, and takes a holistic rather than one-off view of regulations. Phillips commented: “As regulators drive towards more granular reporting, the need will be for a unified data model that includes good quality data and is always on and ready for reporting.”

O’Keefe favoured standards as a response to the regulatory burden, saying: “We are becoming victims of prescriptive regulations, which means getting to common standards would make sense.” He also noted the considerable time it takes to purchase and implement regtech solutions, suggesting the creation of a common infrastructure and collective investment in systems would strip away the barriers to entry, particularly the long time to purchase, for regtech start-ups.

Turning to the question of which regulations will have the biggest impact on data management going forward, Sentance said the Fundamental Review of the Trading Book (FRTB), O’Keefe named General Data Protection Regulation (GDPR), and Phillips noted AnaCredit.

If you would like to find out how US firms are tackling regulatory challenges in uncertain times, join A-Team’s New York City Data Management Summit on 4th April, where a panel moderated by independent consultant David Blaszkowsky, and joined by Tim Lind, principal at RTech Advisors; Roger Fahy, vice president and chief operating officer at CUSIP Global Services; and Mike Smith, head of data strategy, governance and privacy at Citi USCCM, will discuss the data management response to regulation.

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