OTC Derivatives Regulatory Compliance

Accelerate regulatory compliance and OTC derivatives business transformation

Recent OTC derivative regulations directly affect almost every aspect of business process for financial firms and tend to increase operating costs. Shortening deadlines, higher costs and the complexities of regulatory compliance solutions require firms to diligently identify fitting options. 

TCS’ focused methodology and approach enables you to derive strategic business benefits, through conformance to regulatory requirements and improved process capabilities.

The TCS Advantage | Services We Offer | Benefits

The TCS Advantage

We offer ready-to-use assets such as accelerators, tools and frameworks that provide a competitive edge to your compliance efforts. Our solution insights leverage our rich experience in capital market engagements including the following:

  • Deep exposure of OTC derivatives across asset classes
  • Sell- and buy-side engagements in supporting regulatory compliance
  • A strong understanding of the business and IT landscape of buy-side / sell-side / market infrastructure firms

We will help you become compliant on-time and with holistic compliance measures, resulting in the following:

  • Advanced business continuity
  • Increased business opportunities
  • Zero reputation loss due to non-compliance

Services We Offer

TCS’ OTC Derivatives Regulatory Framework helps calibrate comprehensive implementation strategies for regulatory requirements. It optimizes compliance efforts for maximum business benefit out of various OTC derivatives regulations (e.g., Dodd Frank Act and EMIR).

Our three-dimensional assessment framework focuses on tactical and strategic dimensions of your business priorities while addressing processing and technology infrastructure of client firms on the following:

Strategic focus

  • Recalibrate business architecture aligned with regulatory requirements
  • Evaluate OTC derivatives infrastructure and processing capabilities to operate in an emerging business environment
  • Optimize capital costs and investments through risk focus and collateral management

Operational focus

  • Reengineering of flexible and optimized operational processes across product / asset class / geography
  • Automated workflow to support enhanced STP
  • Real-time centralized process view with increased process control (trade process, risk, margining and collateral management)

Technology focus

  • Standardized electronic communication interface to establish connectivity to Swap Execution Facilities (SEFs), Central Counterparties (CCPs) and Swap Data Repositories (SDRs)
  • Rationalization of overlapping applications / IT systems operating in different silos
  • Review of Enterprise Information Management (EIM) architecture to meet real-time monitoring and new reporting requirements

Our engagements span the various stages of your regulatory compliance program:

Business Model Consulting: Formulating the strategy and approach required to address potential changes in business and operating models

Impact Analysis: Current state process mapping and assessment of the impact on existing processes, operations and IT systems

Gap Analysis: Benchmarking of current processes against compliant processes and gap analysis to input in the solution definition phase.

Solution Definition and Roadmap: This includes the formulation of a unique solution vision for your organization on the basis of constraints and regulatory needs. It involves the reengineering of business / IT processing capabilities, application rationalization and redefining information management architecture to cater to target state.

Business Analysis / Development: This includes a detailed requirement analysis and the creation of functional specifications for system development / enhancement. We deliver end-to-end application development, migration and maintenance.

Assurance Services: Comprehensive assurance services like preparation of acceptance test strategy, test plan, test scripts and end-to-end scenario execution 

Solution Benefits

  • Access to the industry’s best practices and in-depth domain insights on OTC derivatives transaction lifecycle processes, across asset classes
  • Ready-to-use assets in form of tools, checklists, templates and process insights
  • Single business partner to support the seamless implementation of the plan across all stages of your compliance programs
  • Accelerated regulatory compliance programs with reduced risk of schedule delays and budget overrun

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