Soc Gen SIB turns to fintech for CCP data solution
28 November 2016 Paris
Image: Shutterstock
Societe Generale Corporate & Investment Banking (CIB) has become the latest major banking group to turn to a fintech firm to assist with the increasing burden of regulatory compliance.
The need for a cost-efficient solution that can be implemented quickly to ensure compliance with the Bank of International Settlement and European Central Bank鈥檚 central counterparty exposure requirements meant that a vendor system proved more attractive than an in-house solution, according to Philippe De Brossard, head of fixed income clearing solutions at Societe Generale CIB.
Societe Generale CIB has committed to improving the collection and harmonisation of its group-wide central counterparty (CCP), exchange and broker data through a partnership with Message Automation.
Message Automation, a post-trade solutions provider for derivatives processing, has confirmed that implementation of its system will begin in December.
De Brossard said: "We have an ambitious implementation plan and speed to market was a key factor in our overall decision making process. Before partnering with Monitoring Automation, we looked at various options including building everything in-house. However, after very careful evaluation of all the possibilities, we decided to engage the services of an external partner to support this high profile project.鈥�
"Monitoring and reporting of CCP exposures is by nature a very complex process, particularly when having to collate and consolidate multiple information sources from a variety of subsidiary companies and over 80 external relationships.鈥�
De Brossard explained: 鈥淥ur project objective is to streamline and simplify the entire process and we are working with the Message Automation team to satisfy two very specific initial requirements. The first being the desire to fully automate our complete exposure reporting capabilities, to reduce our overall operational risk exposure by dramatically reducing manual tasks.鈥�
鈥淥ur second is to create a centralised database to improve data quality. Consolidating the many diverse formats into a single harmonised data store will provide our internal consumers with immediate access to the information that they need in a consistent way, regardless of source, be it a CCP, exchange or clearing broker."
Hugh Daly, CEO of Message Automation, added. "Working in close partnership with our clients we have already significantly increased the number of CCPs, exchanges and clearing brokers our solution extracts data from as well as extending the range of data being received from each.鈥�
The need for a cost-efficient solution that can be implemented quickly to ensure compliance with the Bank of International Settlement and European Central Bank鈥檚 central counterparty exposure requirements meant that a vendor system proved more attractive than an in-house solution, according to Philippe De Brossard, head of fixed income clearing solutions at Societe Generale CIB.
Societe Generale CIB has committed to improving the collection and harmonisation of its group-wide central counterparty (CCP), exchange and broker data through a partnership with Message Automation.
Message Automation, a post-trade solutions provider for derivatives processing, has confirmed that implementation of its system will begin in December.
De Brossard said: "We have an ambitious implementation plan and speed to market was a key factor in our overall decision making process. Before partnering with Monitoring Automation, we looked at various options including building everything in-house. However, after very careful evaluation of all the possibilities, we decided to engage the services of an external partner to support this high profile project.鈥�
"Monitoring and reporting of CCP exposures is by nature a very complex process, particularly when having to collate and consolidate multiple information sources from a variety of subsidiary companies and over 80 external relationships.鈥�
De Brossard explained: 鈥淥ur project objective is to streamline and simplify the entire process and we are working with the Message Automation team to satisfy two very specific initial requirements. The first being the desire to fully automate our complete exposure reporting capabilities, to reduce our overall operational risk exposure by dramatically reducing manual tasks.鈥�
鈥淥ur second is to create a centralised database to improve data quality. Consolidating the many diverse formats into a single harmonised data store will provide our internal consumers with immediate access to the information that they need in a consistent way, regardless of source, be it a CCP, exchange or clearing broker."
Hugh Daly, CEO of Message Automation, added. "Working in close partnership with our clients we have already significantly increased the number of CCPs, exchanges and clearing brokers our solution extracts data from as well as extending the range of data being received from each.鈥�
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