Arcesium Adds Regulatory Reporting Automation to Opterra Platform

Data management service provider Arcesium has launched a regulatory reporting extension to its Opterra data lifecycle management platform.

The New York-based company said the new tooling enables clients to utilise data they already have to automate the collection and presentation of information required for compliance processes.

The extension was created to meet growing demand for ever-more granular data from regulators. Arcesium said clients will now be able to automate disclosure processes using their data on trades, positions, P&Ls and accounts, saving time and resources.

“COOs and compliance leaders are expressing an urgent need to modernise their reporting processes, save time and reduce costs,” said Neil Visnapuu, product owner for regulatory reporting at Arcesium. “This solution empowers them to do precisely that. By auto-populating reports and completing disclosures… managers can release significant resources currently tied up in gathering data from fragmented sources. This streamlined way of working also empowers them to quickly adapt to any future regulatory demands”.

Regnology Acquires CG3-1

Specialized reporting solutions provider Regnology has acquired CG3-1, a firm known for its regulatory calculations in the U.S. broker-dealer market. The move is expected to enhance Regnology’s offerings for broker-dealers by integrating expertise in regulatory capital, customer reserve, and portfolio margin requirements.

Founded in 2018, CG3-1 has established itself among U.S. broker-dealers seeking compliance with regulations like SEA 15c3-1 (Net Capital Requirements), SEA 15c3-3 (Customer Protection) , and FINRA Rule 4210 (Margin Requirements). The acquisition offers CG3-1 the opportunity to expand its services by leveraging Regnology’s extensive regulatory reporting capabilities. This includes developing end-to-end reporting solutions with automated data sourcing and enhancing client experience through improved workflow efficiency.

Rob Mackay, CEO of Regnology, commented on the acquisition: “Combining Regnology’s platform with CG3-1’s tools allows us to better serve the North American market with robust regulatory reporting solutions.”

Charles Greiner III, President of CG3-1, added, “Joining forces with Regnology provides significant value for our existing clients. The integration offers enterprise-grade business continuity and security, enabling us to expand our offerings under SEA Rule 15c3-1 and 15c3-3.”

Both companies are collaborating to integrate CG3-1’s solutions into Regnology’s portfolio, aiming to provide a more seamless experience for clients navigating complex regulatory requirements.

Combating Deepfakes: LSEG Introduces Advanced Identity Verification

As fraud techniques become more advanced, organizations worldwide are grappling with the challenge of securing financial transactions and verifying identities effectively. In response, London Stock Exchange group (LSEG) Risk Intelligence has introduced two new solutions aimed at strengthening defences against sophisticated fraud: Global Account Verification (GAV) and Document and Biometric Verification (DBV).

Payment fraud remains a significant concern, with UK Finance reporting losses of £213.7 million in the UK during the first half of 20241. In an effort to combat this, regulatory bodies in the UK and the EU are implementing new rules for reimbursing victims of Authorized Push Payment (APP) fraud. Starting January 2025, all payment service providers within the EU are required to offer 24/7 instant payments, and by October 2025, mandatory checks of account names and IBAN numbers will be in place for Eurozone providers2.

Global Account Verification: Enhancing Payment Security

GAV is designed to tackle APP fraud by enabling real-time verification of bank accounts and ownership across an initial 22 countries. The system cross-references account information to provide a “match,” “close match,” or “no match,” allowing organizations to confirm that payments reach the intended recipients. LSEG Risk Intelligence plans to expand GAV’s coverage to include 80% of G20 countries in the near future3.

The rise of synthetic media and deepfakes has made identity verification more challenging. DBV combines facial recognition, document screening, and liveness detection using advanced AI and deep learning technologies. This solution supports over 16,000 identity documents from more than 220 countries, in over 140 languages and typesets, facilitating secure and scalable identity verification processes.

Integration and Operational Efficiency

Both GAV and DBV are available via API, enabling seamless integration into existing systems and workflows. This is crucial for organizations aiming to enhance security measures without disrupting operational efficiency.

“Fraudsters are constantly innovating and operating with greater sophistication than ever before,” says Ramesh Menon, Group Director of Product Management for Digital Identity & Fraud at LSEG Risk Intelligence. “As bad actors exploit vulnerabilities across client and vendor workflows, investing in robust, data-driven solutions is essential to mitigate global payments and identity risks.”

By introducing these new tools, LSEG Risk Intelligence aims to assist multinational corporations, financial institutions, and fintech companies in defending against fraud while complying with evolving regulatory obligations.

GLEIF – Finbridge Partnership Streamlines ID Verification for FinTechs

In a move to enhance trust and efficiency within the financial services industry, the Global Legal Entity Identifier Foundation (GLEIF) and Finbridge Global are collaborating to streamline the identity verification process for FinTech companies. This partnership aims to facilitate smoother collaborations between financial institutions, investors, and FinTech providers by utilizing a standardized identification system.

Finbridge Global operates a platform that allows financial institutions and investors to search, compare, and assess FinTech companies worldwide at the product level, simplifying the due diligence process. By integrating the Legal Entity Identifier (LEI) system into its platform, Finbridge Global plans to verify the identities of listed FinTech providers, promoting greater transparency, security, and accountability. Through a partnership with LEI Worldwide, the platform will also offer LEI issuance and management services to FinTechs.

An LEI is a unique 20-character code standardized by the International Organization for Standardization (ISO) and assigned to legal entities. Each LEI corresponds to a verified company identity record in the Global LEI Index, an open, globally recognized database accessible to everyone. With over 2.7 million LEIs issued globally, the system addresses challenges in verifying counterparties in a fragmented global marketplace.

For FinTech providers, obtaining an LEI enhances credibility and demonstrates a commitment to transparency, enabling quicker and more efficient connections with potential partners. Financial institutions and investors benefit from streamlined due diligence and procurement processes, as the LEI provides clear digital identification of potential FinTech partners. LEI data can also help map corporate structures and relationships, offering insights into the interconnections between entities and allowing for more accurate risk assessments of organizations operating internationally.

“Integrating the LEI into the Finbridge Global platform addresses the challenge of meeting stringent due diligence requirements,” says Alexandre Kech, CEO of GLEIF. He notes that this integration sets a new standard of trust, accelerating Know Your Customer (KYC) and Know Your Business (KYB) processes and acting as a catalyst for broader FinTech adoption worldwide.

Barbara Gottardi, CEO and founder of Finbridge Global, emphasizes the importance of tackling identity verification and fraud in the financial industry. “By embedding LEIs into our platform, we offer a frictionless and instant means of verifying FinTech companies’ identities while preserving data privacy and confidentiality,” she explains. Gottardi views this step as pivotal in creating a unified, globally recognized identity management system that accelerates the establishment of new partnerships and elevates industry standards.

This collaboration reflects a broader trend toward adopting standardized identity verification methods to enhance trust and efficiency in financial services. As the FinTech sector continues to expand, such initiatives are critical in fostering secure and effective collaborations across the global financial ecosystem.

ISDA Ops by Validus: Streamlining ATE and CSA Threshold Complexity

Validus Risk Management recently launched ISDA Ops, an advanced platform that simplifies the complex task of managing ISDA Additional Termination Events (ATEs) and Credit Support Annex (CSA) thresholds. By automating calculations and real-time monitoring, ISDA Ops addresses the intricate challenges financial institutions face with customized terms and vast data volumes, enhancing efficiency and reducing operational risk. 

The management and monitoring of complex ISDA ATEs and CSA thresholds present significant challenges owing to the intricate nature of the agreements and the sheer volume of data that needs to be tracked and analysed in real time. 

• Complexity of Customized Terms: ATEs allow parties to specify a nearly unlimited range of events that can trigger the termination of an ISDA Master Agreement. These can include credit-related defaults, significant declines in a fund’s net asset value (NAV), or incorrect tax representations. The highly customizable nature of these terms results in a complex mix of structured and unstructured data making standardization difficult and requiring bespoke solutions for monitoring each agreement. 

• Volume of Data Across Multiple Counterparties: Financial institutions often manage thousands of trading lines across numerous counterparties, each with their own specific ATEs and CSA Thresholds. Keeping track of these varied terms manually is not only time-consuming but also prone to errors, increasing operational risk. 

• Real-Time Monitoring Requirements: The dynamic nature of ISDA markets necessitates real-time monitoring of ATEs and CSA thresholds. Delays in identifying breaches or potential collateral calls can lead to undetected exposures and financial losses. 

• Complex Calculations for Collateral Management: CSA Thresholds determine the level of unsecured exposure tolerated before collateral is required. Calculating these thresholds accurately involves complex computations that factor in live market data, exposure levels, and specific contractual terms. 

• Regulatory Compliance and Risk Management: Regulatory frameworks demand stringent risk management practices, including the effective monitoring of counterparty risk and collateral adequacy. Failure to comply can result in regulatory penalties and reputational damage. 

ISDA Ops addresses these issues by providing an intelligent and scalable approach to constructing ATE and CSA Threshold conditions. The platform allows users to analyse and test conditions using live and forecasted data, enabling real-time, proactive decision-making. 

“Managing ISDA ATEs and CSA Thresholds has been a complex task for risk management teams,” said Alain Smith, Head of Client Engagement at Validus Risk Management. “ISDA Ops provides a clear, consolidated view of the data, helping users identify potential breaches and model future risks more effectively,” he said. 

Key features of ISDA Ops include: 

• Automated Tracking and Calculation: Automatically calculates and tracks ISDA ATEs and CSA Thresholds across all counterparties, streamlining risk management processes. 

• Real-Time Risk Management: Enables proactive decision-making by identifying potential collateral calls early, improving management of counterparty and liquidity risks. 

• Enhanced Reporting: Offers intelligent reporting tools that simplify tracking and updating ISDA terms, increasing transparency. 

• Scenario Analytics: Allows users to simulate potential future scenarios using live and forecasted data, proactively addressing potential risks. 

ISDA Ops integrates with Validus’s Horizon platform, including RiskView for hedging monitoring and reporting, TradeView for front-office hedging, and PortfolioView for portfolio-level risk management. This integration enables CSA Thresholds to be updated and monitored within RiskView and incorporates PortfolioView data for condition testing. 

Validus plans to deliver further enhancements to ISDA Ops before the end of the year, incorporating generative AI to efficiently parse complex language and improve data retrieval. Earlier in June, the company announced upgrades to TradeView, enabling automation of pre-trade checks. 

Bitnomial Exchange Implements Eventus Trade Surveillance

Bitnomial Exchange is implementing the Validus solution from trade surveillance and financial risk solutions provider, Eventus. The digital asset derivatives exchange has been collaborating with Eventus since 2021 to integrate order and execution flow for two major futures commission merchant (FCM) clients on the exchange. The decision to fully deploy Validus followed a comprehensive review of Bitnomial’s internal surveillance tools alongside external solutions. 

The move reflects the exchange’s commitment to robust oversight and maintaining and strengthening compliance and market integrity during a period of significant growth by expansion into new products and increasing trading volumes. 

“Integrating Eventus’s advanced surveillance technology with our proprietary systems reinforces our dedication to compliance and transparency,” said Michael Dunn, President of Bitnomial Exchange. “As we continue to grow, it’s crucial that we provide a secure and efficient trading environment for our clients.” 

Eventus CEO Travis Schwab noted the synergy between the two firms. “Bitnomial’s rapid expansion highlights the need for scalable surveillance solutions,” he said. “Our expertise in digital assets and regulatory compliance positions us well to support their evolving needs and uphold the integrity of their markets.” 

In the first half of 2024, Bitnomial reported over $130 million in notional value traded, marking a 1,081% increase from the same period in 2023. Founded in 2014, the Chicago-based exchange offers physically settled Bitcoin futures and options, providing a regulated platform for institutional and professional traders in cryptocurrency derivatives. Recent developments include the introduction of Hashrate futures in partnership with Luxor, targeting Bitcoin miners, and the Commodity Futures Trading Commission’s approval of Bitnomial’s clearinghouse late last year. By enhancing its surveillance infrastructure with Validus, Bitnomial aims to support its expansion while maintaining high standards of market oversight and client trust. 

SteelEye Integrates Trade Surveillance with AI-Powered Compliance CoPilot

Integrated surveillance provider, SteelEye has expanded Compliance CoPilot by integrating its trade surveillance capabilities. Leveraging advanced large language models (LLMs), the enhanced tool provides automation, intelligent analysis and actionable insights, enabling compliance practitioners to prioritize high-risk alerts and streamline their review workflow. 

By intelligently scoring and prioritizing alerts, the Compliance CoPilot allows analysts to focus on the most critical risks, significantly reducing manual review time by up to 90%. Compliance CoPilot has been in production for communications surveillance since November 2023, the AI-powered integration with trade surveillance now offers comprehensive alert explanations and provides recommendations for categorizing and resolving alerts, complete with rationales. 

The increasing interconnectedness and complexity of financial markets have empowered wrongdoers to adopt more sophisticated market manipulation tactics, such as cross-product manipulation—a form of abuse where trades in one product are used to manipulate the price of another. See the recent RegTech Insight story on SteelEye’s Cross-product manipulation detection capability.  

Surveillance teams face the dual challenge of detecting these advanced abuses while managing a surge in alert volumes amid tightening budget constraints. “Compliance staff are under immense strain, overwhelmed by volumes of suspicious trading alerts each day,” said Matt Storey, Chief Product Officer at SteelEye. “The ability to prioritize the most important alerts is essential for bolstering firms’ risk management practices. The Compliance CoPilot empowers teams to operate more effectively and proactively, becoming the go-to sidekick for surveillance officers.” 

According to SteelEye’s 2024 Annual Compliance Health Check Report, spending on compliance has decreased significantly compared to 2023, even as market abuses like cross-product manipulation become more prevalent. With a 30% increase in reported market abuse cases this year, firms are under more pressure than ever to improve their surveillance capabilities. By allowing firms to intelligently manage their workload and focus on the most urgent alerts, the AI-enabled assistant enhances the efficiency and accuracy of surveillance functions. It also affords firms more time to assess and strengthen their market surveillance capabilities on a broader scale. 

Built with compliance-specific AI, the Compliance CoPilot provides transparent explanations and rationales for its recommendations, ensuring trust in its operations. The tool integrates seamlessly into existing workflows for SteelEye users, offering an immediate boost to their surveillance operations without disrupting established processes. 

In an era of escalating market complexities and tighter budgets, SteelEye’s enhanced Compliance CoPilot offers a comprehensive tool for firms aiming to stay ahead of sophisticated market manipulation tactics. For more insights from the 2024 Compliance Health Check Report, visit the SteelEye website. 

Novatus Secures $40 Million Growth Funding from Silversmith Capital Partners

Novatus Global, a leader in regulatory technology for financial institutions, has raised $40 million from Boston based growth equity firm Silversmith Capital Partners. This funding marks a significant step for Novatus, enabling the company to expand globally and enhance its technology amid an increasingly complex regulatory landscape. 

Founded in 2019 by experienced industry professionals, Novatus has quickly built a strong reputation among top banks, asset managers, and financial institutions. Over the past year, the company has seen its revenue more than triple, reflecting the growing demand for its compliance solutions. The investment from Silversmith will help Novatus enhance its flagship platform, En:ACT, a cloud-native SaaS solution that simplifies complex transaction reporting requirements across various global jurisdictions. 

Andrew Hedley, Co-Founder and Partner of Novatus, emphasized the alignment between the two companies. “Silversmith shares our vision of creating products that make our clients’ operations safer and more efficient,” he said. “This investment will allow us to deepen our commitment to innovation while accelerating our international expansion, particularly in North America.” 

Co-Founder and Partner Mathew Ranson highlighted the company’s unique approach to transaction reporting, drawing on the founders deep operational knowledge of the transaction reporting space and its challenges. “We built Novatus with a focus on automation and technology, moving away from human-driven processes. Silversmith recognized the potential of our En:ACT platform, which leverages AI and machine learning to address regulatory challenges with fresh thinking.” 

Silversmith’s Principal, Ned Kingsley, echoed this sentiment, expressing confidence in Novatus’ future. “We look for founders who solve real-world problems, and Andrew and Matt have done exactly that. We’re excited to support their continued growth,” Kingsley noted. 

Alan Robertson, Partner at Maven Capital Partners, which had previously invested in Novatus, praised the company’s progress. “Since our initial investment, client adoption of En:ACT has driven a 13-fold increase in annual recurring revenues. We remain committed to supporting Novatus in scaling globally and enhancing its market-leading platform,” Robertson stated. 

This new partnership will also see Silversmith’s Todd MacLean and Ned Kingsley joining the Novatus board, further reinforcing the strategic alignment between the two firms.  

By combining deep industry knowledge with AI-powered technology, Novatus is well positioned to help its clients navigate an evolving global landscape with greater confidence and agility. 

Droit Achieves Top Cloud Security Certifications, Strengthening Trust in Data Integrity

Droit, a leader in computational law and regulatory technology, has achieved the ISO/IEC 27001:2022 and ISO/IEC 27017:2015 certifications, solidifying its commitment to cloud security and data protection. These certifications, which represent the highest international standards, reassure clients amid increasing concerns over cyber threats.

Droit’s latest certifications demonstrate its proactive stance on resilience, security, and data privacy, assuring clients that the firm’s security frameworks align with globally recognized best practices.

Achieving these certifications offers several benefits: enhanced protection against cyber-attacks, adherence to evolving security standards, secure management of information across formats, and a unified approach to safeguarding data. “These certifications are a testament to the hard work and dedication of our entire team,” said Brock Arnason, Founder and CEO of Droit. “We’re fostering a culture where security excellence is integral to our business.”

Arnason added, “Our clients can be confident that their data and cloud services are secure, bolstering their own compliance efforts through our alignment with ISO standards.”

ISO/IEC 27001 focuses on information security, cybersecurity, and privacy protection, while ISO/IEC 27017 provides guidelines specific to cloud security. Both standards address emerging threats in cloud computing and advanced technologies, reinforcing trust among Droit’s stakeholders.

Kaveh Moravej, Droit’s Head of Information Security, emphasized the importance of these certifications: “Integrating these standards goes beyond compliance; it embodies our commitment to prioritizing client data security in every facet of our operations.”

These certifications build on Droit’s 2022 achievement of the ISO/IEC 27001:2013 certification, further demonstrating its dedication to a robust Information Security Management System (ISMS) that meets global benchmarks.

Sedric AI Secures $18.5 Million Series A to Revolutionize Compliance for Financial Institutions

Sedric AI, a pioneer in AI-driven compliance technology for financial institutions, has raised $18.5 million in a Series A funding round led by Foundation Capital, with participation from Amex Ventures. This investment brings Sedric’s total funding to $22 million, which will be used to expand its AI lab in Tel Aviv and strengthen its global sales teams. 

As financial institutions increasingly adopt generative AI to enhance their offerings, they face growing scrutiny from regulators to ensure robust safeguards across all customer touchpoints. “For financial institutions, compliance and growth can often feel like competing priorities,” said Nir Laznik, co-founder and CEO of Sedric. “Our compliance-dedicated AI turns risk into an opportunity, providing a proven, bank-ready solution already widely adopted across the financial services sector.” 

Sedric’s platform is among the first of its kind to feature a large language model specifically designed for compliance, giving firms a holistic view of their compliance risks across all communication channels. The technology allows companies to quickly identify and correct potential policy breaches, reducing the need for costly manual reviews. 

The company’s growth has been impressive, with revenue increasing fivefold in the past year. Sedric now counts global banks, lenders, trading platforms, and insurers among its clients in the U.S. and Europe. 

Eyal Peleg, co-founder and CTO, emphasized the importance of responsible AI adoption: “GenAI will transform the financial sector, but it’s crucial to use it responsibly. Our platform provides the guardrails needed to ensure AI is used safely and within regulatory boundaries.”