Duco launches EMIR-compliant transaction reporting eligibility validator

Rick Steves

“With Duco’s transaction reporting eligibility validator, customers can run independent checks whenever they want, get results in minutes, and access a clear audit trail. The solution provides insights at a field-by-field level so clients can see specific issues, discuss, and show ESMA they are considering discrepancies at a deep level.”

Duco has introduced a new transaction reporting (TR) eligibility validator designed to help financial services firms ensure their reporting meets the European Market Infrastructure Regulation (EMIR) standards, with plans to extend support to additional regulatory frameworks in the future.

With the TR eligibility validator, the prominent SaaS company known for its AI-driven data automation solutions is enabling a detailed comparison of a firm’s internal eligibility rules against the European Securities and Markets Authority (ESMA) requirements, identifying discrepancies in reporting through Duco’s advanced reconciliation and exception management capabilities, combined with the regulatory expertise of Quorsus, a part of Capgemini.

“Avoid unwanted attention from regulators”

James Maxfield, Chief Product Officer at Duco, commented: “With EMIR Refit preparations in full swing, Duco has been supporting many buy and sell side firms in getting ready with post-reporting assurance. Eligibility checks are a key pain point for customers, so we decided to enhance our existing solution. Customers need to show regulators they are putting robust controls in place.

“With Duco’s transaction reporting eligibility validator, customers can run independent checks whenever they want, get results in minutes, and access a clear audit trail. The solution provides insights at a field-by-field level so clients can see specific issues, discuss, and show ESMA they are considering discrepancies at a deep level.”

Andrew Pinnington-Mannan, Head of Derivatives and Regulatory Consulting, Quorsus (part of Capgemini) commented: “We’re delighted to join forces with Duco in bringing this solution to market. Eligibility rules are complex to interpret, let alone implement, and many customers need help with both.

“More importantly, firms need to be able to demonstrate to regulators that they have credible, independent validation of their rules, and that their controls are effective, regardless of changes to processes or to datasets. By embracing modern data technology backed by strong expertise in regulatory reporting, they can unlock unprecedented agility to their business and avoid unwanted attention from regulators”.

Duco also rolled out pre-configured processes for EMIR Refit

In late 2023, Duco launched pre-configured processes as an integral component of its EMIR assurance toolkit. This development is poised to fortify the crucial data controls spanning trade capture, trade reporting store, and the trade repository, all in alignment with the EMIR ISO XML formatting.

The solution embodies an out-of-the-box approach, encapsulating core processes that ease the transition towards compliance with the evolving EMIR standards. Operational dashboards integrated within the solution offer enhanced oversight alongside proficient exception management, coupled with intelligent root cause analysis recommendations.

The embedded workflow engine facilitates apt routing and remediation of exceptions. With a deployment timeline of just a few days and no requisite build, the offering alleviates concerns over continual maintenance updates. A testament to its agility was demonstrated when Duco swiftly adapted to the ESMA’s schema alterations announced on 6 September, implementing the requisite updates within a mere few days.

The EMIR Refit heralds a more complex landscape for maintaining data integrity, given the expanded data reporting obligations, introduction of new fields like UPI, and alterations in reporting field derivations like UTI. As firms grapple with whether to delegate reporting or manage it in-house, the onus of adherence to the new framework unequivocally lies with them. The regulatory paradigm shift underscores a diminished tolerance for data inaccuracies, necessitating a robust control framework that firms must exhibit.

Duco has recently appointed Michael Chin as CEO. Chin joined Duco from Broadway Technology and took over from Christian Nentwich, who led the company for over 10 years. This transition follows Duco’s consistent growth, particularly since its acquisition by Nordic Capital in 2021.

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