A fresh take on risk and valuation
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new doors and doing new things,
because we are curious, and curiosity keeps
leading us down new paths.
June 20, 2017
TOWARDS EMIR II? New EMIR reporting standards & the EMIR review

This article discusses the review of the European Market Infrastructure Regulation, conducted in May 2017. It lists a brief overview of the regulatory framework to date, including RTSs (on complex trades, cleared trades, Collateral Exchange, notional amount, etc.), ITSs (on the use of LEIs, classification of collateralization, generation of UTIs, etc.) as well as updates to the official Q&A. Apart from this basic overview, the article delves deeper into the specific changes for reporting and reporting standards. It portrays four main fields that we have some reason to believe that the review is going to be concerned with, together with predictions of how these challenges will be addressed.

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June 13, 2017
AnaCredit

This Expert input focuses on the analytical credit database project of the ECB (AnaCredit). It explains this new database – which is intended to consist of a dataset with granular information on individual loans, how this dataset is aggregated in the Eurozone (and potentially beyond), what the initial limitations are and what plans the ECB may have to overcome them in the future. It shows the reporting process and timeline in which the database will be introduced. Most importantly, it describes three building blocks that any institution needs to adopt in order to make sure that they are successfully compliant.

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June 01, 2017
BCBS 239 A Long Road to Compliance

This Expert input conducts a thorough examination of the Principles for Effective Risk Data Aggregation and Risk Reporting that were primarily intended for Global Systemically Important Institutions but are of great interest to all. It explains the intuition behind BCBS 239 and why it is important for other institutions than G-SIB’s. It provides a broad overview of all 14 principles, and their meaning for institutions as well as supervisors. It looks at the greatest challenges in the implementation of BCBS 239 (traditionally data quality, but technical issues too) and offers four key suggestions for successful compliance.

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February 10, 2017
Big Data in the Financial Industry

This expert input follows the release of a discussion paper on the use of big data by financial institutions published by the Joint Committee of the European Supervisory Authorities. It examines the general data-related regulatory framework that financial institutions are facing or will face in the future, all the way from very general requirements (GDPR) to requirements specific to financial services (EMIR & MiFID II). The paper also discusses the potential uses of big data by financial institutions and how it would influence the operations of those institutions, their potential costs and benefits. The expert input concludes with our evaluation of the possibilities arising from big data as well as our projection of the regulatory future regarding this topic.

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February 06, 2017
Insurance Stress Test 2016 - Answers to Your Questions

This Expert input explains in detail all the intricacies surrounding 2016 EIOPA insurance stress test. Taking the form of questions and answers, it explains the scope and the purpose behind stress testing, the scenarios that were examined and the way their impact was measured. The results are glossed over. We also commit to putting forth our opinion on what we think about the validity of the assumptions, just how representative the stress test may actually be and for whom the results may provide useful intuition, and for whom they may be less than relevant. Lastly, we provide our estimates on what actions the regulators are going to take in reaction to this stress test.

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