BST Awards 2022: Best buy-side compliance product (regulatory reporting)—Cappitech

Overview

Cappitech’s cloud-based, cross-regulation software-as-a-service (SaaS) platform is designed to allow financial institutions to comply with a wide range of regulatory requirements via a single, intuitive dashboard with with out-of-the box connectivity to all main approved reporting mechanisms (ARMs) or trade repositories (TRs). Cappitech supports compliance with the following regulatory regimes: Mifid II, Emir, SFTR, SEC, CFTC, Canadian derivatives reporting, MAS, JFSA, HKMA, ASIC, and FinFraG. The firm is currently focused on upcoming regulatory requirements such as the CFTC Rewrite, Emir Refit and JFSA changes, set to be implemented in late 2022 and beyond.

What problem does it address?  

Cappitech’s SaaS platform, developed using the agile methodology, is available to clients via a single dashboard, facilitating accurate and timely regulatory reporting. Data transformation is built into the platform, obviating the need for clients to write to Cappitech’s spec and reducing the effort required to provide data to various regulatory authorities. Being serverless, the platform can support large transaction volumes and processing spikes.

Secret sauce 

Cappitech’s multi-jurisdictional platform constitutes the heart of its regulatory offering. However, its services go beyond pure technology delivery—it provides holistic solutions designed to address and streamline clients’ regulatory compliance challenges. Its managed services offering allows clients to focus on their business-critical tasks, while Cappitech takes care of regulatory reporting assessments and implementation support around clients’ bespoke processes, and onsite/offsite operational support.

Recent milestones

• Integration of IHS Markit, S&P Global Market Intelligence and Cappitech.
• Over 40 new hires.
• Implementation of MAS OTC trade reporting.
• SFTR analytics (leveraging data generated by SFTR).
• Enhanced pairing and matching capabilities.
• End-of-day reconciliation—clients can verify and reconcile inbound messages and outbound reports.
• Data management—data can be amended through the Cappitech dashboard.
• Full-service SEC provision following implementation of rules in November 2021.
• Managed services enhancements.

Future objectives 

Cappitech is focused on ensuring that its clients are ready to comply with the CFTC Rewrite (set to be implemented in early December 2022), ASIC and MAS changes (both scheduled for 2024), SEC 10c-1 (scheduled for 2023/4), and Emir Refit and JFSA (both scheduled for 2024). It is also focused on continuing to expand its managed services offerings. 

Why they won 

It seems Cappitech is in a good place right now. Acquired by IHS Markit in January 2021―which then merged with S&P Global a year later―the regulatory reporting specialist is well-placed to service the combined entity’s substantial buy-side clientele, allowing them to focus on their core business while Cappitech takes care of all the regulatory heavy lifting and interpreting the regulatory minutiae from a technology and operational perspective.