5 big banks launch Endoxa to create a Position Reporting Utility

Rick Steves

Banking consortium that is launching Endexa includes Barclays, BNP Paribas, Goldman Sachs, and HSBC.

Endoxa, a consortium of five global financial powerhouses comprising Barclays, BNP Paribas, Goldman Sachs, HSBC, and another prominent bank, has unveiled a groundbreaking initiative aimed at streamlining and enhancing securities holdings reporting for market participants.

This revolutionary venture is set to transform the way regulatory obligations are approached and fulfilled in the financial industry.

A better solution for disclosing securities holdings to regulatory bodies

Global position reporting rules mandate that market participants disclose their securities holdings to regulatory bodies. However, this process has long been known for its complexity, time-consuming nature, and the duplication of efforts across the industry.

Recognizing the need for a more efficient and effective solution, Endoxa has embarked on the creation of a Position Reporting Utility, the first of its kind in the financial sector.

The primary objective of this innovative utility is to elevate the quality of securities disclosures while reducing errors stemming from interpretation and implementation challenges. Leveraging machine-readable rule logic established through a consensus model, Endoxa seeks to simplify the reporting process, benefitting both financial institutions and regulators.

Endoxa to leverage Droit’s Position Reporting product

Endoxa will undertake an exhaustive assessment of intricate shareholder disclosure obligations across various regulatory jurisdictions. The consortium members will contribute their consensus views on interpretative aspects of the disclosure rules, complemented by legal insights provided by Allen & Overy. These insights will be combined with standardized legal analysis from aosphere LLP’s Rulefinder Shareholding Disclosure. The resulting codified decision logic will be incorporated into Droit’s Position Reporting product.

This collaborative effort will empower users to fulfill their reporting obligations consistently and effectively, promoting regulatory transparency and reducing uncertainty. By tapping into Droit’s technology, financial institutions can streamline decision-making processes, maintain a transparent audit trail, and achieve heightened operational efficiencies.

Droit, the selected technology provider for this groundbreaking project, brings its patented Adept platform to the table. Known for its ability to foster dialogue and consensus on regulatory interpretation within the industry, Droit is well-positioned to drive this initiative forward. Droit’s Position Reporting product automates decision-making and provides a traceable audit record for every evaluated position, catering to both sell-side and buy-side institutions. The platform enhances clarity, streamlines operations, and establishes a repeatable and defensible reporting process. Users also have the option to raise queries about logic implementation nuances.

Brock Arnason, Founder and CEO of Droit, views this consortium as a trailblazing approach to regulatory compliance. He highlights the potential for this partnership to tackle numerous industry challenges, especially in the realm of complex regulatory obligations.

Richard Hempsell, Managing Director and Global Head of Core Operations at Goldman Sachs, underscored the importance of the consortium in fostering unified standards and transparent, consistent compliance across the financial industry. The platform is set to become a market standard for interpreting disclosure rules globally, offering institutions the assurance that they are meeting regulatory requirements consistently across multiple entities.

Kara Lemont, Global Head of Financial Markets Compliance at BNP Paribas, emphasized that this initiative instills confidence among regulators and legislators that rules are being consistently and comprehensively applied, representing a major stride forward for the financial sector.

By streamlining securities holdings reporting and establishing a unified approach, this groundbreaking venture is poised to enhance transparency, reduce complexity, and promote consistency in regulatory compliance, benefiting both financial institutions and regulators alike.

Read this next

Retail FX

Revolut eyes Big Four auditor as board frustrated by BDO remarks

British fintech firm Revolut is reportedly considering a change in its auditing firm following a warning in its last annual accounts, as audited by BDO.

Institutional FX

Börse Group’s 360T taps Virtu for TCA and trading analytics

Virtu Financial and Deutsche Börse Group’s FX platform, 360T, have teamed up to improve the foreign exchange trading experience for their clients.

Digital Assets

Bybit Surpasses 20 Million Users Milestone Ahead of 5-Year Anniversary

Celebrating its 5th anniversary in December of this year, Bybit announced that it has surpassed 20 million registered users, highlighting its growth and position in the industry.

Digital Assets

Changpeng Zhao leaves Binance.US as SEC ramps up scrutiny

Changpeng ‘CZ’ Zhao has resigned from his position as chairman of the board for Binance.US, distancing himself from the governance of the American division of the cryptocurrency exchange.

Digital Assets

M2 granted full license to operate multilateral trading facility in UAE

Cryptocurrency exchange M2 has been approved as a fully regulated Multilateral Trading Facility (MTF) and custodian, now authorized to engage with UAE retail and institutional clients.

Digital Assets

Court approves Voyager’s $1.65 billion settlement with FTC

A New York federal judge has given the nod to a settlement that holds Voyager Digital and its former CEO, Stephen Ehrlich, accountable for misleading investors about the safety of their funds.

Retail FX

Financial Safety First: Why Regulated Brokers Are Your Best Compass

Picture yourself on the brink of the expansive financial trading universe, poised and ready to jump. But what ensures your descent into this financial abyss is controlled and secure? The unspoken hero here is regulation. It serves as a safeguard, setting rules and standards that help you navigate the market with a greater sense of security and less risk of unforeseen losses.

Industry News

Obituary: Campbell Adams, founder of ParFX and Pure Digital, passes away

Campbell Adams’ pioneering spirit and his contributions to the development of the FX industry as well as the digital asset trading space will be remembered and valued by industry peers and the broader financial community.

Inside View

Will Europe lead the way in crypto derivatives market structure?

The envisioned future market structure aims to provide direct access to regulated venues, offering 24/7 trading, lower initial margin requirements, and efficient risk management through remote custody agreements. This model is not just about addressing the current challenges but is also geared towards leveraging the best practices from the crypto markets.