With just a few days to go before the A-Team Group RegTech Summit for Capital Markets in London, we caught up with David Morris, product manager at RegTek Solutions, one of the RegTechs that will showcase their innovative technologies at the event. We talked to David about issues such as regulations needing smarter solutions, the problems RegTech can help solve, and how RegTek solutions can fit into existing architecture.Q: What does RegTech mean to you?
A: RegTech is about providing innovative and agile software solutions to an increasingly demanding and constantly evolving regulatory landscape.
Q: What problem does the financial institution have that you believe you can solve?
A: Thousands of firms are impacted by competing priorities to provide high quality, accurate and complete regulatory reporting, on a timely basis. Compliance is not optional and it’s not a competitive differentiator, it’s mandatory and it requires a well-informed and sustained commitment. RegTek.Solutions is mutualising the cost of keeping pace with the regulations by providing flexible, enterprise grade solutions, maintained by a long-term service level agreement and supporting critical business outcomes.
Q: Why do they have this problem?
A: A mixture of external issues, such as economic, political and infrastructural market reforms that have brought about an increase in the number of regulatory changes placed on market participants, and internal issues such as legacy systems and complex trade lifecycle processes. These issues have made the effort and cost of complying with new regulations immense.
Q: What regulations are of primary concern to you and your customers?
A: We’re concerned with whatever regulations keep our clients up at night. Currently that’s Markets in Financial Instruments Directive II (MiFID II) and Markets in Financial Instruments Regulation (MIFIR), a rewrite of the Regulatory Technical Standards (RTS) for European Market Infrastructure regulation and, on the horizon, we’re monitoring Securities Financing Transactions Regulation (SFTR), the CTFC’s high quality swaps data initiative, Securities Based Swap Reporting (SBSR), and the SEC’s Consolidated Audit Trail (CAT).
Q: How do you solve the regulatory problem?
A: We provide a strong understanding and expertise around the regulation itself, which provides our clients with the commitment that we will keep up to date with the ever-shifting regulatory challenges that they face. We also deliver cost-effective software to provide clients with the controls they need to build a compliant and robust regulatory reporting framework.
Q: What technology do you use?
A: HTML5/Java script and an Oracle back end. Also REST or JMS application programming interfaces (APIs).
Q: How do you fit into a financial institutions architecture and data flows?
A: Seamlessly, we support hosted and locally installed models. Our software is developed and deployed as microservices to help integration with our clients’ systems.
Q: What other cool RegTech companies have you seen out there?
A: FundApps, a firm built with a similar ethos to our own and building out solutions for shareholder disclosure reporting.
Q: Why are you taking part in A-Team’s RegTech Summit for Capital Markets event?
A: In three words: collaboration, innovation and community.
Q: What type of people are you hoping to meet at the Summit?
A: A mixture of people from clients to market participants and other vendors that are pushing the envelope around innovative software solutions.