The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

RIMES Strengthens BMR Push with EBR Acquisition

RIMES Technologies Corporation (RIMES) has acquired London-based EBR Analytics (EBR), a Benchmarks Regulation (BMR)-focused RegTech company, adding the EBR solution to its own BMR compliance suite, RIMES RegFocus BMR. Following the transaction, the EBR brand will fold into RIMES, with the EBR team joining the company under RIMES’ leadership.

There is a natural synergy between the two companies. RIMES has been active in RegTech for the buy-side since 2016 while EBR has focused its efforts on the sell-side, winning several Tier-1 clients. With its new acquisition, RIMES is clearly seeking to cement its position as a leading European BMR solution provider ahead of the Libor phase-out.

BMR is a major focus for the firm, which it calls “the most extensive benchmarks regulation in the world” and which has placed unprecedented burdens on all firms involved in a benchmark’s lifecycle: administrators, contributors and users.

A key issue is that right now, there are effectively two sets of regulations running in tandem: the EU Benchmark’s Regulation and the UK regime, which will come into play once the Brexit transition period ends. But how might these two regimes will diverge? With current levels of uncertainty, firms need to have a solution in place that allows them to meet whichever changes might come – even if they don’t know exactly what those changes are yet.

But one thing that is clear: the situation will continue to evolve – and there are almost certain to be discrepancies between the two regimes. As RIMES points out,  the regime for third-country administrators is also still far from finalized, and there’s a possibility that the current transition period may be extended to 2025, as per the proposal by the European Council.

“All this comes at a time when benchmarks have never been more important thanks to the explosive growth of Exchange-Traded Funds (ETFs),” explains the firm. “The sheer popularity of such funds is causing regulators to focus in on the area, and that means index providers will be coming under increasing scrutiny – particularly those that issue both indices and ETFs, a conflict of interest which… may be looked on with scepticism by regulators.”

Andrew Barnett, Global Head of Product Management at RIMES, stresses that: “Firms are under pressure to comply with a ‘live’ regulation even as that regulation continues to evolve. What’s clear is that transparency into the indices used by firms has never been more important.”

With the EBR Analytics acquisition, RIMES is moving yet further into a leadership position in the BMR space, as it seeks to build out its strategic capabilities within the RegTech space.

The firms have not released specific financial details of the deal.

Related content

WEBINAR

Recorded Webinar: Improving data integrity to address regulatory requirements

Financial institutions today face a global regulatory landscape characterised by rigorous and varied reporting requirements across their businesses. Reporting challenges include completing more data fields across more lines of business with greater frequency, adding complexity and cost. At the same time, there is waning tolerance among supervisory bodies for errors, issues or delays – as...

BLOG

Financial Crime Specialist Plenitude Consulting Ramps Up Executive Team

The appointment late last month of HSBC UK’s former head of financial crime compliance, Allan Clare, as senior advisor is the latest in a series of high-level appointments by financial crime risk and compliance specialist Plenitude Consulting. The hires come as the firm ramps up its RegSight obligations management platform, which helps firms identify rules...

EVENT

RegTech Summit APAC Virtual

RegTech Summit APAC will explore the current regulatory environment in Asia Pacific, the impact of COVID on the RegTech industry and the extent to which the pandemic has acted a catalyst for RegTech adoption in financial markets.

GUIDE

ESG Handbook 2021

A-Team Group’s ESG Handbook 2021 is a ‘must read’ for all capital markets participants, data vendors and solutions providers involved in Environmental, Social and Governance (ESG) investing and product development. It includes extensive coverage of all elements of ESG, from an initial definition and why ESG is important, to existing and emerging regulations, data challenges...