OTCFin, a provider of risk and portfolio data management solutions, is building out its managed services offering and delivering regulatory compliance solutions based on its expertise in analytics, risk and performance data generation, integration and aggregation. The company’s first compliance engine is designed to meet the requirements of Solvency II and can be provided as either an in-house solution or a managed service.
Founded in 1990, OTCFin initially offered consultancy services to institutional investors and alternative investment managers. Its aim was to help customers integrate in-house and third-party solutions, and build out enterprise data infrastructure to support portfolio and risk management.
More recently, the company has productised some of the custom solutions developed during consultancy projects to offer a product portfolio including the PATOne Suite, which integrates risk and performance data and reporting activities throughout the investment process, as well as enterprise data management, analytics and reporting products. It also offers a hosted data management services, with a focus on data transparency across both products and services.
Joseph Ohayon, managing director at OTCFin, explains: “We build tailored platforms using best-in-class solutions and support asset classes from equities to sophisticated fixed income instruments. We also offer a hosted data management service that processes client holdings data and enriches it with requested market and analytics data, while performing data quality checks. Large financial institutions may prefer to work with us on in-house data and risk management solutions, but the hosted service is gaining traction among small and medium-sized firms.”
OTCFin’s first, but not last, foray into regulatory compliance is a solution for Solvency II that can be implemented in-house or accessed as a managed service. Ohayon says: “Solvency II is a by-product of risk management, so we have leveraged our business and technology capabilities to deliver a solution. If you have the right data infrastructure, computation and stress testing, reporting for Solvency II should not be too much of a challenge and you also have the basis for compliance with other regulations.”
Ohayon expects the managed service for Solvency II compliance to find particular favour with small to medium-sized insurance companies and asset managers within the scope of the regulation that do not want to build solutions, but do need to source Solvency II datasets and reporting capabilities. The company is already working with a few European clients that will use the managed service and expects more to subscribe as the Solvency II deadline of 1 January 2016 approaches. It is also considering other regulations it could support, such as AIFMD and Form PF. Looking forward, Ohayon suggests OTCFin will increase its commitment to managed services with the aim of providing more services at a competitive cost.