Regulatory Reporting

To meet the P&L attribution tests, a high degree of consistency is required, between the data from the front and middle office, right through consistent sources, snap times and risk factor derivation methods. Meeting FRTB requirements means keeping track of data changes, but also tracking alterations to calculation logic and parameters.

The fundamental review of the 
trading book calls for a similarly fundamental review of data architecture. Use the regulatory mandate to retire legacy frameworks; Create centralized data pools and invest in machine-learning driven data analytics to find trends and correlations across desks and; Avoid replicating data or business logic to minimize reconciliation concerns. 

Bring data sources and models closer together; Centralize core capabilities for data sourcing, ingestion, validation and reporting with consistently replicable and auditable processes and; Consolidate the methodologies for derived data accumulation, including proxy creation, interpolation and early warning reports for risk factors nearing or breaching modellability tests. 

Retain your competitiveness at reasonable cost and gain requiring resource flexibility; Private cloud technology should ensure data security within the environment, with “weakest links” remaining access through mobile devices that must be contained through system walls and access controls and; Banks will increasingly move development and test environments into the cloud for agility and cost savings.