A number of new regulations and rules for corporate swaps came into effect under the Dodd-Frank Act recently.

Because of the increased data requirements that correspond with many of the new regulations, we have been keeping an eagle eye on what’s been unfolding.

In partnership with Willis Group Consulting, ZE offered a 45-minute complimentary webinar last week showcasing what our technology could do to meet some of the challenges associated with the new legislation.

Just this week, the regulatory body – the Commodity Future Trading Commission (CFTC) – adopted a number of new regulations and rules for swap data recordkeeping and reporting under parts 43, 45, and 46 of Act (also known as the Dodd-Frank Wall Street Reform and Consumer Protection Act).

During the webinar, we discussed the impact of the new legislation on corporate risk and showcased ZEMA’s ability to handle reporting of trades with one of the leading Swap Data Repositories (SDR) – ICE Trade Vault.

Much of the presentation focused on the particulars of how we report with ZEMA, but here are some of the highlights:

1.      Test Case Demonstration

During the webinar, we used a test case where we submitted in-house reports to ICE Trade Vault using ZE Data Manager, a part of ZEMA suite. We showcased Data Manager’s ability to schedule and automate the reporting process.

Normally there would be two parties submitting reports for a trade, which would be used to verify each other, but for our demonstration we were the reporting party for both ends. We did this to show we can obtain the unique swap identifiers (USIs) from the SDR, given after the SDR verifies a report. When Data Manager retrieves the USI’s or encounters a problem, such as the SDR being down for maintenance, it can send notifications to user-defined parties through email. Once Data Manager is set-up properly you can let it work in the background without too much supervision.

2.      Adaptable Automated SDR Reporting Solution

We also presented a generic example of SDR reporting. The ZEMA solution is dynamic and we can tailor it to meet different SDR reporting requirements. For instances, we can work with a variety of databases and formats, and file the USI’s in another database. Automating the process makes it faster and easier while at the same time reducing the risks of human error. This can be especially valuable when there are many large reports. Our solution can be applied across an organization and can be used repeatedly.

If you’re interested in checking out our solution for yourself, you can book a demonstration tailored to your business needs by clicking here.