Delv Global

Challenge: 

Capture the data lineage for data flowing to regulatory reports required for a new Intermediate Holding Company (IHC) that was established to comply with the Federal Reserve’s Regulation YY Enhanced Prudential Standards (EPS). 

Context and Solutions:  

The client’s data structure was highly complex, containing approximately 1,200 critical data elements for key regulatory and financial reports, all of which were now subject to the newly implemented governance rules. To funnel the appropriate data to regulatory reports, Delv designed a collection template to capture metadata about critical elements essential for key regulatory and financial reports.

Results: 

The resulting metadata repository allowed the client to satisfy the regulator that its data governance framework supported the validity of the data in its EPS regulatory reports. In addition, it established a valuable intellectual property asset for the client that shortened the discovery phase of future projects, while also opening the possibility of rationalizing redundant data and processes in the future.

Challenge: 

Implement an Automated Control Adjusted Platform customized to meet Enhanced Prudential Standards (EPS) requirements within tight deadlines. 

Context and Solutions: 

FRB reporting requirements imposed a daily IHC reporting deadline of 2pm on T+1. This required a daily transfer of hundreds of unique data attributes per position into the client’s reporting warehouse by that time. Because most of the data was generated by overnight batch processes, incorrect booking of any trades would cause the client to miss the T+1 cutoff. To address this issue, Delv designed a solution that automatically generated predictable GL and position adjustments in the T0 batch, as well as a complementary web-based manual adjustment platform for entering non-standard adjustments on T+1.

Results:

Delv successfully designed, tested, and delivered the two solutions, which together allowed the client to meet the daily 2pm T+1 deadline to satisfy its EPS regulatory reporting obligations. It also enabled the client to exercise a far greater degree of control over the adjustment process than had been previously possible, as well as higher data quality, availability, and granularity in its financial and P&L reporting processes.

Challenge: 

Producing an Institution-to-Institution Credit Exposure Report, to fill a data gap identified by the Financial Stability Board. 

Context and Solutions: 

Delv initially built a matrix to clarify the requirements, which encompassed over two thousand items, and identify possible data sources, solutions, and gaps.   A prototype was then built in SQL that was used iteratively, in an Agile manner, to model the various report components for rapid data validation by SMEs. In parallel, a major challenge was remediating gaps in data coverage given a lack of automated data feeds from many CCPs and carrying brokers.  A third stream involved enhancing an existing reporting tool to allow various departments to populate data that could not be sourced automatically.. 

Results: 

The prototype solution delivered by Delv successfully automated 99% of the report items, and the client was able to meet the regulatory reporting deadline, thus contributing to the FSB’s ability to understand the exposures of global financial institutions to each other.  Delv’s prototype and documentation was then used by the client to deliver a productionized solution.