New Hotscan360 Solution From Canada’s CGI

Anti-financial crime solutions provider CGI has launched CGI HotScan360, an enhanced version of its existing HotScan solution. CGI HotScan360 provides integrated, intelligent and real time anti-money laundering, customer due diligence and fraud detection capabilities. The platform uses a real-time risk engine to scan and score thousands of transactions per second utilising machine learning, advanced analytics and automation. “CGI HotScan360 is a modular solution that allows banks to integrate certain modules with other systems or omit them, as necessary,” says CGI. “The solution also complies with the latest and upcoming regulations such as PSD2, GDPR and SEPA instant payment requirements.”

Asian Development Bank Launches AML Scorecard

The Asian Development Bank (ADB) has launched a new scorecard designed to enhance regulatory efficacy to boost access to trade financing while enhancing efforts to combat financial crimes. The ADB Scorecard is informed by and complements the work of the Financial Action Task Force (FATF) and the Financial Stability Board (FSB). It is comprised of “Seven Elements of Effective Regulation” including consistency, risk alignment, co-design, communication, technology/data, enforcement and quality control. “The Scorecard is not an end in itself, but the beginning of a process. The next step is a workshop with stakeholders to address issues,” says the ADB.

Fintrail Solutions Launches Financial Crime Forum

US-based financial crime consultancy Fintrail Solutions has launched the US chapter of the FinTech FinCrime Exchange (FFE), a free members forum already operating in Europe which brings together a network of fintech firms to collaborate on the best practices in financial crime risk management and create a globally connected community in the fight against financial crime.

“Currently, there is no platform in the United States where financial technology and regulatory technology firms can share information and learn from each other,” said Julie Myers Wood, Fintrail Solutions Co-Founder. “This new chapter of the FFE changes that.”

FIX Trading Community Calls for Industry Participants to Join New Working Groups

FIX is inviting industry participants to join a number of new working groups that will operate under the FIX Trading Community umbrella.

The working groups include a repo working group covering how to automate the lifecycle of repos using FIX and an RMB products group to propose enhancements to the FIX Protocol for RMB product related workflows. A securities lending group will develop messages to support automated processing of securities lending and an SFTR group will help firms meet the challenges of Securities Financing Transactions Regulation (SFTR), including reporting obligations that are expected to come into play in late 2019 or early 2020.

If you would like to join any of these working groups contact the FIX Program Office – fix@fixtrading.org.

Compliance.ai Launches New Product

RegTech specialist Compliance.ai has launched a new Workflow Automation solution as part of its financial regulatory change management platform. The software-as-a-service platform is designed to clients to cost-effectively manage the growing volume and velocity of regulatory changes in near real-time without increasing headcount.

“Chief Compliance Officers are tasked with managing a massive increase in the volume and complexity of regulatory changes – and the consequences for not complying include huge financial fines and reputational damage – yet banks often don’t have the resources or technology to efficiently keep track of and comply with the regs they need to,” said CEO Kayvan Alikhani.

Dash Financial Technologies Acquires eRoom Securities

Capital markets technology and execution provider Dash Financial Technologies has signed an agreement to acquire Chicago-based eRoom Securities.

The eRoom platform, which provides multi-asset trading technology, agency execution, risk management, reporting and clearing services to professional traders, institutions and hedge funds, will be rebranded as Dash Prime.

As the Dash Prime project gets underway, eRoom leadership will continue to be headed by Collin Carrico and Ben Schwartz.

“Joining forces with Dash puts us at the leading edge of technology and enables us to broaden our prime services suite to create more opportunities for our current and future clients,” says Carrico.

The transaction is expected to close in Q1 2019, contingent upon standard closing conditions including regulatory approvals.

DSB Raises User Fees for OTC ISIN Service in 2019

The Derivatives Service Bureau (DSB) has published 2019 user fees for the provision of ISINs for OTC derivatives. Power and standard user fees rise 4.5% to €117,500 and €39,200 respectively, while infrequent users, essentially low volume or ad hoc users of the service, will see their fees unchanged at €3,000 in 2019.

The service works on a cost recovery basis with changes in numbers of various types of users effecting 2019 fees. Based on 2018 figures, banks pay the largest percentage of the user fees at 56%, with trading venues paying 31%, and other categories including buy-side and data vendors paying 13%. As well as paying users, the DSB provides OTC ISIN data to registered users, the largest category of users making up two-thirds of the DSB’s user base, free of cost.

Ascent Works with FCA to Simplify Regulatory Handbook

US-based RegTech provider Ascent has formalized its collaboration with the UK’s Financial Conduct Authority (FCA) to break down the agency’s regulatory handbook into smaller and more digestible pieces for ease of consumption.

The partnership is designed to make it easier for financial institutions to understand and apply the FCA guidelines to their operations. Ascent will use its expertise in AI, machine learning and natural language processing to convert the FCA text into distinct workable tasks.

Chinese Official Urges RegTech Investment

Lu Lei, Deputy Director of China’s State Administration of Foreign Exchange, has stressed the need for greater investment in regtech to support new market developments. “In the blockchain and the internet core high-frequency trading market, the past era of conducting regular off-site inspection and on-site inspection based on financial statements’ statistics implemented by the traditional financial institutions with single business are over,” he said at the 8th Asia-Pacific Forum on Economy and Finance. “This puts the urgency of real-time regulation on the agenda, and at the same time, implementing real-time regulation will also require payment systems and regtech to support.”

DLT to Help Regulators

Applications such as Distributed Ledger Technology (DLT) can help to effectively regulate the derivatives markets, according to Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo. He noted that DLT could be used to automate certain regulatory processes, which he described as “quantitative regulation.”

“We can… envision the day where rulebooks are digitized, compliance is increasingly automated or built into business operations through smart contracts, and regulatory reporting is satisfied through real-time DLT networks,” he said. “The machines here at the CFTC would have the ability to communicate regulatory requirements and consume and analyse the data that comes in through such systems.”