Regulatory Reporting - The Road Ahead

The financial services industry continues to face a challenging regulatory environment, most notably within trade and transaction reporting requirements. In fact, given recent market developments, including the acquisition of a troubled European bank and failure of a U.S. commercial bank, firms may witness another wave of changes to further strengthen the resiliency of the global banking infrastructure and monitor potential market abuse. There are a number of key drivers behind regulatory reporting change programs, such as new and updated reporting rules, findings and fines from supervisory authorities, and internal initiatives to address operational inefficiencies. Given the increased focus on cost reduction and tight change budgets in the current environment, market participants should seek to adopt a strategic approach to regulatory reporting transformation with the aim of strengthening compliance while simultaneously reducing long-term costs. This includes adopting a hybrid operating model, establishing a mature data strategy, reducing manual processes by increasing automation, and leveraging third-party RegTech products to deliver reporting solutions.