Satisfying Regulatory Reporting
Whether it’s Basel II or FATCA reporting, you need to ensure that your data is clean, accurate and up-to-date. Most importantly, you need to be able to identify which entity is covered by which regulations or directives.
Alacra can add LEIs (Legal Entity Identifiers), FATCA GIINs (Foreign Account Tax Compliance Act Global Intermediary Identification Number), CIK (Central Index Key), credit ratings, and many other identifiers, to your counterparty information. This allows you to quickly and accurately generate the appropriate reports to satisfy your reporting obligations.
One of the world’s largest credit insurers satisfies Solvency II reporting requirements
As part of its Solvency II reporting requirements, one of the world’s largest credit insurers, with more than 150 offices in 50 countries, had to indicate which of its buyers were rated by any of the credit rating agencies.
The insurer subscribed to one source of data for entity information, another for ratings information and a third for credit risk metrics. It had no common identifier across its data sources.
Having evaluated a number of internal and external options on how best to address the requirements, the client engaged Alacra’s concordance solution to match and cross-reference the rated issuers, credit default metrics and company attribute information to a single common identifier.
On a monthly basis, Alacra concords the 55,000 entities in the client’s universe and provides a single clean, de-duped and cross-referenced file which allows them to generate all their required reports.
A credit rating agency meets Dodd-Frank Act reporting requirements
In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), the Securities and Exchange Commission (SEC) adopted amendments requiring credit rating agencies to identify all rating actions with the name of the rated security or obligor, the CUSIP of the rated security or the Central Index Key (CIK) number of the rated obligor. Not only was the agency unable to match the obligors to the legal entity identifiers, it also had inaccuracies and inconsistencies in its own database records.
Alacra provides concordance services to the rating agency’s rated issuers to help cleanse and align all of the legal entity data to CIK numbers and provide security-level data mastering of all of the existing CUSIP and ISIN sources licensed by the agency. The resulting files are then maintained against changes to the legal entity and agency’s security data sources.
The credit ratings agency was able to meet Dodd Frank provisions by providing more transparency around their ratings. In addition, through the provision of additional entity identifiers, they were able to help clients who were receiving the agency’s credit ratings feed but were having difficulties integrating the data into their own database systems due to the prior datafeed inaccuracies and inconsistencies.