Lombard Risk Management, a leading provider of integrated regulatory reporting, collateral management and compliance solutions for the financial services industry, is pleased to announce that REPORTER is actively in use by firms for the creation and submission of regulatory liquidity reporting in line with both the European Banking Authority’s pan-European and local UK regulatory Prudential Regulatory Authority requirements.
As part of the European Banking Authority’s (EBA) harmonisation of European regulatory reporting, local competent authorities are implementing a new expanded liquidity regime at European and ‘local’ levels (Bank of England, PRA in UK), designed to monitor current processes as well as provide insight into future operations. The CO(mmon) REP(orting) framework initially comprised reporting about Capital Adequacy, Large Exposures, IP Losses, Leverage, Liquidity Coverage and Stable Funding and Asset Encumbrance and firms had to dig deep to produce more, and more detailed, calculations and reports for the regulator (electronically in XBRL). COREP was closely followed for many firms by FIN(ancial) REP(orting).
The latest set of regulations focuses on the Liquidity Coverage aspect – referred to by Lombard Risk REG-Xpertsas ‘LIQREP’. This includes in the short term (July 2015) Additional Monitoring Metrics (AMM), then the Liquidity Coverage Ratio (LCR) requirement (October 2015), all at the same time as crystallising implementation of intraday liquidity reporting (2015), liquidity disclosure, and of course ongoing stable funding requirements which themselves are hardened (January 2016) with an obligation under the Capital Requirements Regulation (CRR) to ensure that long-term obligations are adequately met with a diversity of stable funding instruments under both normal and stressed conditions in advance of the Net Stable Funding Ratio (NSFR) date of 2018.
At the same time, the UK PRA’s liquidity regime is changing to take account of the changing European landscape. Firms need to realise that, for many, the existing regime continues for some time, at least in part, but other firms, especially certain foreign branches, may be impacted quite significantly. For more information in ‘LIQREP’ EU and/or UK register below:
· Read Lombard Risk Impact Analysis report “LIQREP-EU”
· Read Lombard Risk Impact Analysis report “LIQREP-UK”
Lombard Risk REPORTER has met the full complexities of EBA Implementing Technical Standards (ITS) including comprehensive XBRL support for some time, and as a part of this is already enabling firms to meet the current Liquidity Coverage reporting requirements: creating a single reporting platform that meets regulatory and management reporting demands. Existing REPORTER clients have benefitted from an integrated, end-to-end regulatory return solution that can be flexibly deployed around their existing infrastructure and processes.
Many new firms have turned to Lombard Risk REPORTER to implement a single, comprehensive EBA Common Reporting solution (which includes COREP, FINREP and ‘LIQREP’) in place of continuing with either in-house, spreadsheet-style reporting, or previous vendor solutions that are no longer able to keep pace with the regulations or the technology platform now required.
Robert Markham, EMEA Sales Director – REPORTER, at Lombard Risk explains: “Lombard Risk is seeing an increasing demand in the market for a truly modular solution with comprehensive core coverage and functionality, combined with flexibility in terms of multi-source integration, configurable workflow and analytics. The accelerating growth of Lombard Risk’s regulatory market share once more validates our strong solution roadmap.”
Lombard Risk has an unparalleled resource, one of the largest UK-based teams, of financial and regulatory subject matter experts that make up the REG-Xpert group. REG-Xperts are constantly monitoring the global regulatory landscape, reading and interpreting the rules and working closely with firms to meet the regulatory demands: collecting information, producing reports, submitting in XBRL.
Lombard Risk REPORTER is a combination of the expertise of the REG-Xperts team; of a clear definition of the data needed to achieve regulatory reporting requirements; and of flexible implementation offerings (direct or cloud). Lombard Risk REPORTER keeps pace with regulatory requirements, automating end-to-end from data collection to electronic output, so giving firms the ideal solution for all automated regulatory reporting requirements.
James Phillips, Director of regulatory strategy at Lombard Risk says: “The REG-Xpert team has been working closely with our clients for COREP and FINREP and most recently now for ‘LIQREP’ (what we call EBA liquidity reporting requirements). The new European regulatory requirements have been a challenge for some, and the XBRL reporting format has added another dimension of complexity, but our clients have now become well versed with testing and submitting XBRL files in line with the regulators’ requirements. Our XBRL-Checker, a REPORTER-compatible module, provides users with XBRL VISUALISATION as well as VALIDATION functionality and this too is being upgraded to provide the same support for LCR.”