Data Management Insight Brief
Moody’s Acquisition of Bogard Expands KYC Coverage for Politically Exposed Persons
Moody’s has acquired Bogard AB, a provider of data and information on politically exposed persons (PEPs) in the Nordic region. The acquisition advances Moody’s ability to help customers perform Know Your Customer (KYC) screening and research to address financial crime. Bogard covers over 17,000 PEPs, relatives, and close associates across Sweden, Norway, Denmark, and Finland. Moody’s will integrate Bogard into its KYC business within Moody’s Analytics, and combine Bogard’s data with its existing PEP, sanction, and adverse media data. The transaction builds on Moody’s previous investments in KYC and anti-money laundering (AML) capabilities, and augments its Orbis company database and Grid database of adverse news, sanctions, and PEPs.
IBA Releases US Dollar SOFR ICE Swap Rate for Use as a Benchmark
Intercontinental Exchange’s (ICE) ICE Benchmark Administration (IBA) business has released its US dollar SOFR ICE Swap Rate for use as a benchmark in financial contracts and financial instruments by licensees. The release follows the successful publication of US dollar SOFR ICE Swap Rate settings on an indicative, ‘Beta’ basis since October 1, 2021, and is expected to support the US dollar non-linear derivatives market in its ongoing transition to SOFR. The US dollar SOFR ICE Swap Rate settings are available for the same tenors and published at the same time as the current US dollar LIBOR ‘1100’ ICE Swap Rate benchmark.
CGS Adds Sustainability Categorisation to Bonds
CUSIP Global Services (CGS) has incorporated ESG indicators for US corporate and municipal bonds within its data feeds. The unit of S&P Global now provides classifications of issuances according to their sustainability attributes. The new feed uses International Capital Market Association (ICMA) and Climate Bonds Initiative methodologies to identify the securities as green, social or sustainable bonds. Roger Fahy, Vice President and Chief Operating Officer at CGS, said the new data field was created because the company had been approached by investor clients keen to know how to differentiate between green issuance and “vanilla” debt. “We see there is a need to be able to logically categorise new offerings separate from the general population of debt,” Fahy told A-Team ESG Insight.
LSEG and JPXG to Launch TOPIX-based Climate Indices
New climate indices are to be launched based on the TOPIX 500, offering investors a net-zero benchmark for companies listed on Japan’s stock market. Compiled by London Stock Exchange Group (LSEG) and Japan Exchange Group (JPX), the FTSE/JPX Net Zero Index Series will be based on the European Union’s Climate Transition Benchmark and will be aligned to meeting net-zero targets by 2050. They will also integrate Transition Pathway Initiative (TPI) Management Quality scores, which indicates how far a company has built climate-change policies into its operations. The indices, which will go live early next year, can be used for passive or active investment strategies and will also be available for research use, the LSEG said.
Goldman Sachs Adds Carbon Footprint Measures to Marquee
US investment bank Goldman Sachs has built carbon footprint analyses of companies covered on its Marquee digital marketplace, enabling institutional investors to track the emissions of stocks and corporate bonds within their portfolios. The calculations are based on Scope 1 and Scope 2 emissions data as well as carbon intensity levels and net-zero commitments. Users will also be able to compare their portfolios against benchmarks that will enable them to analyse carbon contributors by sector, industry and region. Analytics within the offering comply with global standards including the European Union’s Sustainable Finance Disclosure Regulation and the those of the Task Force on Climate-Related Disclosures.
UK’s FCA Seeking Views on ESG Product Labelling
The UK’s financial watchdog is seeking views from market participants on how investment products should be labelled with regard to their sustainability and corporate social responsibility profiles. The Financial Conduct Authority said it was also gathering opinions on supporting entity-level and product-level disclosures. The announcement was made on Finance Day at the COP26 UN climate summit in Glasgow. The findings will shape policy proposals that will go out for consultation in the spring, the FCA said. In its latest Financial Lives survey, the regulator found that 80 per cent of respondents said they wanted their money to “do some good”.
CACEIS selects Cardabel machine learning to optimise reconciliation
European asset servicing group CACEIS has implemented Cardabel’s machine learning (ML) technology to optimise securities and cash position reconciliation as part of the digital transformation of its middle-office outsourcing offer. The Cardabel technology reduces processing times and enhances CACEIS’ reconciliation offering. Sandrine Legrand, head of middle-office at CACEIS, says: “The challenge was to reduce turn-around times for clients’ reports while dealing with a constantly rising volume of flows. Cardabel’s offer is the perfect fit, and enables employees to focus on higher value tasks that raise client satisfaction”.
Contour extends use of LEI to inclusion in trade finance network
Contour, a digital trade finance network, has partnered the Global Legal Entity Identifier Foundation (GLEIF) to enable the use of Legal Entity Identifiers (LEIs) within its network and to financially support its members in obtaining their own LEI. By adopting the entity identifier, Contour’s members will benefit from increased confidence among their trading counterparties, lower data reconciliation costs, reduced transaction discrepancies and improved risk management. Contour plans further use of the LEI including building the identifier into its KYC processes and collaborating on the GLEIF-led Verifiable LEI (vLEI) initiative.
GRI Revises Universal Standards and Restructures Governance
Global Reporting Initiative (GRI) has revised its universal standards to help subscribers better report on their ESG impacts. The revisions, the “most significant” update since 2016, incorporate human rights disclosures and have been carried out to enable firms to better respond to new regulations, particularly SFDR. The Netherlands-based sustainability standards setting organisation has also reshaped its governance structure, creating a two-tired setup comprising a Supervisory Board of directors and a Management Board, consisting of the CEO and Chief Financial Officer. Current CEO Eric Hespenheide will step down in January.
Broadridge Adds AI-powered Anti-Money Laundering Solution
Broadridge Financial Solutions has released Broadridge Anti-Money Laundering Solution (AMLS), bringing new capabilities to the company’s existing intelligent automation suite. The solution delivers an end-to-end machine learning (ML) powered AML platform covering transaction monitoring, name screening, alert prioritisation, and customer risk scoring. The platform is powered by cloud-based AML transaction monitoring software provider Tookitaki.