December 20, 2024 • 38 mins
In this special episode, recorded live at the 2024 client event in Madrid, we hear predictions and analysis of what 2025 will bring for the regulatory reporting industry and markets - from Thomas Steiman (CEO, Regis-TR SA) Mari Carmen Mochón (CCO), Sara Gil (Client Services), Aušrinė Juškevičiūtė (Institutional Relations), Pilar Martinez (Public Affairs), Marianna Longobardo (Markets Research), Shi Thiele (Eurex Clearing) Aladin Bennouna (Quintet Private Bank), Kevin Demeyer (Deloitte’s), Grant Haley, Micheal MacAlinden & Amanda Macallister (1st Derivative). Plus festive holiday messages from Paula López Ortega (Head of Client Services), John Kernan (CEO, Regis-TR UK) and Nicholas Bruce (Head of Business Development, Regis-TR).
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Episode Transcript
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Speaker 1 (00:08):
this podcast is brought to you by register,
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the register team and specialguests expressing their personal
opinions, not the opinions ofregister as an organization.
There is no representation madeas to the accuracy or
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(00:29):
Hello and welcome back to theRegistry, our roundup podcast
for part two of our Madrid liveevent special that was recorded
at the Palacio de la Balsa acouple of weeks ago during a
very, very successful day ofinsights and analysis from
(00:53):
industry leaders, marketparticipants and experts on
regulatory reporting on thestate of 2024.
And if you haven't heard thatepisode, do go back in our feed.
It was the last one that cameout.
You can find it on our LinkedInpage that's linkedincom slash
company, slash Regis hyphen TR,and that was looking back at
(01:14):
2024.
Today's episode is all aboutlooking forwards to 2025 and
what regulatory reporting hasgot in store for us there.
And who better to kick it offthan Thomas Steinman, the CEO of
Registriar SA, and he had thisto say about the year that's
gone and the year that's comingWell, that's a good question.
Speaker 2 (01:37):
My hope is consolidation settling down and
seeing what we have put in placeis working, is consolidated,
we're delivering what we saidwe're going to deliver and for
me, that is my hope for 2025.
Listening to some of the panels, listening to future dates, I'm
(01:59):
not so convinced that this hopefinally is reality.
So there are some challengesongoing.
Convinced that this hopefinally is reality.
So there are some challengesongoing.
We heard some people talk aboutrumors for other regulations
with changes coming up.
So it will be between myunderstanding, between my hope
of consolidation and my fear ormy looking forward view of now
(02:21):
turning into pending topics weare having and pending topics
the market are having theregulator, the Saarwagen, and
from there to develop and tolook into these future things.
So hopefully the balance ismore a little bit towards the
consolidation than to startingalready future pieces.
We are all a little bitexhausted.
I think the market is exhausted, the regulator we heard it and
(02:44):
if you want to read a little bitbetween the lines, I think they
still have a lot to do beforethey can manage all the data
they have now.
So from that perspective, Ithink they have some time to
breath, to sit back and to seewhat they are going to do with
all this data they are havingnow.
And we, I think, also deserveit a little bit now.
And we, I think, also deserveit a little bit.
Speaker 1 (03:05):
The market, the clients, the reporting entities,
the TRs now to, as I said,consolidate on what we have
built and taking from there.
That would be my view andlooking towards 2025, obviously
you should get a holiday.
But are you going to get aholiday?
Are you going to be in theoffice getting ready for
whatever may come from changesoutside the EU?
(03:25):
Perhaps with a deregulatorygovernment in the US, is that
going to mean that everyone inEuropean infrastructure has got
a tougher job to do?
Speaker 2 (03:37):
Well, for sure, we will take holidays, and several
people said it also from theclient side, working weekends,
not having always good nights,all this, I mean, has also a
limit.
So from that perspective andthat is what I said before, the
hope of consolidating thatpeople can, I would not say,
rest, but can recover from whatthis year has been, from a
(04:03):
workload, from a stress level,and from that perspective I do
hope, as I said before, that wecan recover a little bit before
the new challenges are coming up.
I hope it will not only be ahope, but we will see what
future brings.
Thomas Simon, thank you verymuch.
You're welcome.
Thanks to you, thanks for youfor coming, thanks to not
(04:26):
exactly sure who's going tolisten to that, but thanks to
everyone who joined our event,because I think it was a great
event in a great location.
So thanks a lot to everybodyfor making it happen.
Thanks.
Speaker 1 (04:40):
Thomas Steinman there Now.
Someone else I managed to catchup with at the event, who's an
old friend of the Registry ArtRoundup podcast, is, of course,
marie Carmen Michon, who is thechief compliance officer of
Registry Art and, as you canimagine, compliance officers
have had a busy year keeping upwith all the regulatory
implementations and it lookslike they're going to have a
busy year in 2025 as well, asthey keep up with Dora and a
(05:04):
whole new wave of changes aroundthe world.
Here's Mary Coleman now.
Speaker 3 (05:10):
I'm happy to say that we are heading towards a
stabilization period and we allwish to face 2025 with much more
calm and less challenges ahead.
Speaker 1 (05:26):
You don't get to rest , do you?
Because we've got Dora in twomonths.
That is going to be another bigcompliance challenge.
I was going to say headache butchallenge.
But again, for lots and lots ofmarket participants, they're
only just getting over refit.
Do you think Dora is going tohit them equally as hard?
Speaker 3 (05:45):
well, possibly not equally, because, um dora is
more a transversal regulationthat brings requirements in many
different areas of theregulation, but not so much, uh,
specific, in the technologicaldevelopment.
So here it's more a holisticimplementation regarding InfoSec
, management of ICT providers,business continuity, cyber
(06:12):
testing and, yeah, and theninternal training of both senior
management and employees.
So it's going more to thegrounds, to the foundations of
the strategies of ICT riskmanagement.
Speaker 1 (06:34):
Now, one of the really nice things, of course,
about client events is you getto network with the whole team
and I managed to catch up withsome of the people who haven't
been on the show before butcertainly be on it again and
onboarding for clients obviouslyis a huge issue.
It's a major part of servicedelivery for any organization
and certainly where there are somany new financial entities,
(06:56):
non-financial entities andmarket participants that are in
scope of changing regulation,onboarding has become really
important within the regulatoryreporting industry, and who
better to take us through thosechallenges than Sara Gill, who
is one of our onboardingofficers?
Speaker 4 (07:19):
I mean, of course, it's going to be another busy
year for us.
We've got a lot of projectsahead, which you will know on
the next future, but yeah, it'sabout all like improving it,
stabilizing it.
Indeed, I mean from myperspective, which is about
documentation will make.
It will make a lot ofdocumentation disappear and
(07:43):
everything will be on theplatform, so so you'll forget
about physical documentation,for example.
Speaker 1 (07:50):
And so streamlining user experience is going to be a
big part of it.
And finally, I've got to askyou about Dora how are you
expecting the phones to melt inthe customer service department
when the deadline hits inJanuary?
Speaker 4 (08:05):
No, no, no, no.
I don't think in this case.
I mean, I think the importantpart, the critical one, has been
Emil Refit.
This will be much smoother.
Speaker 1 (08:15):
So, yeah, I think it will be a very good year for us
from the participants'experience as is traditional on
the Registry Art Roundup podcastfor our December episode, the
(08:37):
strains of a little bit oflighthearted festive jazz
playing in the background herein the virtual studio.
Because, of course, it is theend of the year and the holiday
season is upon us and, whetheror not Christmas is your
tradition, or you get a holidayor, like so many people working
in the world of financialservices and reg tech, you won't
be getting a holiday.
Or, like so many people workingin the world of financial
services and reg tech, you won'tbe getting a holiday at
Christmas.
You'll be in the office with asandwich and a glass of
champagne, maybe with your linemanager.
We have a few Christmasmessages for you from the
(09:01):
virtual studio crew, and here'sone from someone who's head of
client services and, of course,works with Sarah Gill and the
onboarding team and across thewhole client services remit
paula lopez, and she had thischristmas message for you all
(09:22):
grateful to have spoken at theannual client event for the very
first time.
Speaker 5 (09:26):
I'm very happy and privileged to have had the
opportunity to join such paneldiscussion with some great
speakers such as Felicity fromAVN AMRO, roberto Bermejo from
CNMV, tim Hartley from Kaizenand, of course, our moderator,
joan Kernan, sharing our ownexperiences pre during and
post-reference Go live.
(09:46):
It has not been an easy path,but I think we made it happen.
Obviously, still plenty of roomfor improvements and releases
to go, but we will get there.
Big thank you to everyone whojoined us during this session
and to all VME6 colleagues whomade this possible and to all
participants for the valuableinsight and attendance.
(10:07):
Taking this opportunity to wishyou all the best for this next
2025, enjoy a joyful holidayseason and, switching back to my
native language, I wish you alla happy holiday, a merry
Christmas around you and aprosperous new year 2025.
Speaker 1 (10:44):
Greetings to all now, for a couple of years, and when
it landed, yep, it was a bigone and it's been a huge wave of
disruption across the wholeindustry in europe and perhaps
less so in the uk, but then wedid have a bit longer to get
ready for that, as john kernexplained in our last show.
Do make sure you go back andtake a listen to that.
(11:05):
By the way, if you missed it,lots of great content there all
about, uh, the lessons that havebeen learned.
By the way, if you missed it,lots of great content there all
about the lessons that have beenlearned by the whole industry
and the regulators in 2024.
However, of course, in 2025,there's a lot more regulation
happening all over the world,from Japan to Singapore, from
MIFID to DORA.
There's lots on the horizonmore rewrites, more reviews,
(11:27):
more consultations and more datafields to be reported.
And taking a look at those, wehave Ozrina Juskiviski, the
Lithuanian powerhouse, who joinsus from the institutional
relations team.
We have Pilar Martinez, fromthe public affairs team, looking
at the evolution of theEuropean capital market now the
Savings and Investments Unionand what that could mean for
(11:48):
regulatory reporting and, of, ofcourse, changes with
deregulatory friendlyadministration.
Coming in the us, we havemariana longabardo, who is going
to be looking at the broadermarket situation.
She is a specialist inanalyzing market developments
and trends and all the dataindicators for 2025.
(12:11):
And finally, a few thoughtsfrom Xi Tili, who is from Eurex
Clearing, about the growth ofclearing and what this might
mean to market participantstrading across from the EU to
the US.
So let's kick off with Ozrinafrom the EU to the US.
Speaker 6 (12:31):
So let's kick off with Ozrina.
Dora is coming next.
So we have already on 17th ofJanuary 2025.
So less than two months.
We'll have to be compliant likeall the other European Union
institutions.
You know this is big, that iscoming and we are almost ready
for that.
Speaker 1 (12:45):
Now I've been asking people if 2025 is going to be
nice and smooth, or if 2025 isgoing to be nice and smooth or
if 2025 is going to be achallenging one.
What do you think from theinstitutional relations point of
view?
Speaker 6 (12:57):
Definitely challenging, as always.
You know, we are regulatoryservices, so there is always
something going on.
We have DORA.
Now we also have FinPRAC review, so there is a refit on FinPRAC
and there are rumors about SFTR2.0.
So we don't know if it's goingto come also next year, apart
from other consultation papersthat we're already awaiting from
our supervisors.
(13:18):
So I would say it's going to bechallenging every year.
Speaker 1 (13:22):
And are you going to get a Christmas break this year,
or are you going to be in theoffice with a snack from the
vending machine, wading throughmountains of paper?
What's it going to be like foryou?
Speaker 6 (13:34):
I'm going to have my Christmas break.
Definitely, I'm going to myhometown, to Lithuania, to my
country.
So definitely, at least for afew days during Christmas
Hopefully there's no whiteChristmas I'm going to enjoy
back home in Lithuania.
Get ready and be back for Doraand join back home in Lithuania.
Get ready and be back for Dora.
Speaker 1 (13:52):
Now I've managed to find a quieter corridor to
interview our next guest, pilarMartinez, from the public
affairs team at BME6.
And, pilar, you were on thefirst side.
Chat today about regulatorychange, what's on the horizon,
what's coming, and also somereally interesting European
issues which are adjacent to theworld of market infrastructure,
(14:14):
but perhaps we don't always getthe chance to talk about.
Speaker 7 (14:17):
Yeah, well, indeed, the CMU action plan is nothing
new.
It's nothing outstanding on ourtables that you have never
heard about, but it is the thirdtime that we have these plans
on our desks.
First CMU Action Plan tookplace in 2015.
Second one was 2020, and nowwe're heading for the third
(14:39):
block.
Cmu Action Plan is the toolthat the Commission has to start
and to finalize the CapitalMarkets Union, which is
basically having all the capitalmarkets in the EU functioning
as one single market andbringing in this time, with this
new addition, savings andinvestments.
(14:59):
This goes very well with theinitiatives that we had from the
previous commission aboutretail investment strategy,
benchmarks and another bunch ofregulations that we will see.
I think the most interestingpart about this is the two
reports that we saw early thisyear Draghi report and Leta
report.
They deep dive into theproblems and the challenges that
(15:20):
the CMU will be facing for thenext political cycle, and I
really do think they will besetting the tone for the next
action plan.
Speaker 1 (15:28):
Now tell us a bit more about life from your desk,
because you're involved.
It's not just about publicaffairs.
It's also about strategicplanning for decisions within
the group, looking forward andweathering uncertain times
politically and economically and, let's face it, they couldn't
be more uncertain than they arenow, with so much change, more
(15:48):
elections than they've ever beenin a two year period and, of
course, a new administration inthe US who has a sharp focus on
deregulation.
So tell me, I mean, how do youleave the office?
Speaker 7 (16:03):
Well, that's a very good question, and actually the
US question is the milliondollar one, if you allow me this
one question, and actually theUS question is the million
dollar one, if you allow me thisone.
Um, no, certainly.
Uh, we had the voting year, andthis will materialize in a lot
of changes, not just from us,but from other jurisdictions as
well, and I think it is.
It is a job for the EU to liveup to the expectations, to
maintain this work path thatthey have been following on
(16:26):
strategic autonomy and onbecoming a truly competitive
bloc versus other jurisdictions.
And since you mentioned and youdidn't, but you did the US
elections, I'm guessing, I thinkthat's where the EU really
needs to put a focus.
We still don't know the office,we still don't know what the
cabinet will look like, butwe're hearing rumors already,
(16:47):
and it is already a time for theCommission, for the parliament
themselves, to start working andstart thinking about policies
that can reinforce thisstrategic autonomy without
losing the partnerships and therelations that we already have
with the US.
Speaker 1 (17:05):
Well, I've managed to escape the soft jazz and
grabbed Mariana Longobardo, whois a macroeconomic specialist.
You gave a great talk becauseyou really pulled out and gave
us the helicopter view of thechallenges facing market
participants in the EU.
And, of course, number one is achange in the regulatory
(17:26):
outlook coming from the US andfrom a Trump presidency.
What do you think might be thelikely market disruptions or the
market positives from the newadministration coming in in
January?
Speaker 8 (17:40):
Well, of course, everything will depend on how
quickly those policies will beimplemented.
There is a little bit ofskepticism in that he's going to
actually implement everythingthat he's promising or that he's
promised in his campaign, andhe's also kind of switching
speeches.
For example, two days ago henominated the secretary of
(18:01):
treasury a person from themarket.
He just decided that he wasimplementing tariffs on Mexico
and on Canada in the day one ofthe administration.
So it's hard to decide which isreally rhetoric and which is
exactly going to be implemented.
What we know that in general,there is going to be a more
(18:22):
protectionism trend and it'sgoing to reshape global trade
and global supply chains.
What we think as an opportunityin the first place.
It can be like a challenge for,for example, going to reshape
global trade and global supplychains.
What we think is an opportunityin the first place, it can be
like a challenge for, forexample, export economies like
China or even emerging markets.
But it's also true that in thelast administration, since the
(18:44):
last administration Trumpadministration China reduced its
exposure to the US acrossdifferent economies.
So it can be a newconfiguration of the global
system, the global trade system.
Speaker 1 (19:00):
And you're also talking about the outlook for
GDP growth across the EU, whichlooks like it's slowing, but
there have been some realsuccess stories, like Spain.
Speaker 8 (19:11):
Yeah, sure, actually, in the past years Europe
struggled in terms of GDP growth.
This year we are going to havea modest GDP growth and the
projections is that it's goingto increase for the next two
years.
But Spain has been a goodsurprise.
In fact, spain has a lot ofstrengths in terms of domestic
consumption and also governmentconsumption and the tourism
(19:34):
sector.
The tourist sector is the keydriver this year, I would say,
with record levels of touristscoming to Spain and also
spending a lot of dollars here.
That definitely helps theeconomy and also some
investments that the governmenthas made in improving
(19:56):
competitiveness, especially inthe services sectors.
But I would say that the keydriver from the Spain economy
it's domestic consumption.
Speaker 9 (20:06):
So actually EU and US , they do exactly the different
way.
For example, in EU everythingis very good, prepared and
regulated and in the US theyjust leave the market run and if
they say there's somethingwrong and they will come back
and say, oh, it was not good, itshould be prohibited.
(20:26):
So for them it looks likesomething like trial and fail
and then learning by doing.
But in EU, I believe they dohave a different philosophy.
They want to have the marketregulated so that every
participant in a market, they dohave the security and they do
(20:48):
have the certainty what theycould do, what they are not
allowed to do.
I believe that's a differentapproach.
It could be the case that itlooks chaotic in the US area,
but it's not necessary to be bythe end of the day.
But of course I cannot foreseethat much, but it's at least my
(21:09):
opinion.
Speaker 1 (21:09):
Thank you for the question and that was she tilly,
from eurex clearing, summing upa sentiment that was expressed
on many of the panels during theday at the madrid event that
you know there are changes afootand a change in regulatory
outlook between the eu and theus, which could provide a lot of
(21:31):
opportunities for marketparticipants and open up new
markets, but also raise somechallenges as well for the world
of regulatory reporting.
Uh, wise words there and uh,yeah, we're all watching that
one, she moving on.
Uh, of course it's time to hearfrom another member of the
virtual studio crew, mr nicholasbruce, the voice of reason,
(21:52):
himself the head of businessdevelopment, my statistically
most regular co-host on the show.
Nick's been with us since thebeginning and is a very, very
busy man raring to go with thenew Registrion platform in the
new year, but he found time inhis busy globetrotting schedule
(22:12):
to send this Christmas messageto you all.
Speaker 10 (22:17):
Hello everyone.
It's Nick from the Roundup.
I just really wanted to wisheveryone a very Merry Christmas,
a Happy New Year.
Whatever you're doing, I hopeyou have a fantastic time.
I think for everyone, 2024 hasbeen a period of change,
challenges, so let's hope 2025is a quieter year, and I'm just
(22:41):
wishing everyone a reallyrestful time over this festive
period.
Take care and speak to everyonein the new year.
Speaker 1 (22:51):
One of the things I like most about the annual
client event is I get to leavethe virtual studio.
Like most about the annualclient events, I get to leave
the virtual studio, put on someoutside clothes and go and mix
with regtech, vendors, withmanagement companies and, of
course, most importantly, marketparticipants All those people
who exist as part of theregulatory reporting community
(23:11):
and find out how things havebeen from their side.
And this year was no exception.
I managed to catch up withAladdin Banuna from Quint
quintet private bank, withandreas roussos from 0.9.9.
Of course have been a guest onthe show at last year's live
event.
It was great to meet, uhandreas.
This year I also managed tocatch up with grant haley,
(23:31):
michael mcalinda and amandaMcAllister from First Derivative
and get a real feel for thesort of consulting work that's
going on in such a busy space.
And, of course, kevin DeMeyer,who has been on the show many
times in the past, an expert inall things regulatory reporting
and data quality from Deloitte,and Kevin rounds us off with
(23:54):
some really interesting insightsinto 24 and I ask him the
crucial question about 2025 isit going to be smooth sailing or
is there more choppy water onthe horizon.
Speaker 11 (24:04):
Let's start with aladdin bernouna from quintet
private bank I think it was likeunderestimated before because
because we get comfortable withAMIR, so yeah, we have some
fields to change, that's all.
So we will be quiteunderestimating this project.
But once we try to puteverything on together and try
(24:28):
to adapt our new system, so werealize that there is a lot of
issues and especially alsoissues in data.
So AMIR is not only help us tojust submit in a reporting, but
also to review the way we aredoing the things and the way how
we can challenge our internaldata.
(24:49):
2025 is bringing a lot ofchallenges.
We can see already there is alot of change on the political
side, especially in the US.
The wars around the world, sothe market volatility,
especially also on thecryptocurrencies out there, are
(25:12):
now impacting also the marketRegulatory side also, we have a
lot of changes coming, lookingfor Mifertree, csdr, sftr, so
DORA also, as we mentioned, andthis is all the things.
I think that 2025 will be quitechallenging for us and for our
(25:35):
clients, but we are doing ourbest to relieve these challenges
.
Speaker 1 (25:40):
And also joining me, andreas Roussos from Point9.
Now, point9, we've had you onthe show before different
representatives talking, ofcourse, about your tech
solutions, helping people withtheir regulatory reporting, the
burden of the back office,because we often talk about this
idea that everyone's a tier onebank with a giant back office
and an endless budget, but ofcourse, we know there's lots of
(26:02):
smaller financial counterpartiesthat have reporting obligations
that just can't scale to meetsomething the size of EMEA.
Have you had a great year, orwere you looking forward to a
calmer 2025?
Speaker 12 (26:15):
It's been a very, very challenging year.
Uk and EU refits, rewrites inSingapore, in America, in
Australia, new clients we had tohelp because we offer a managed
service right.
So for us it's not a matter ofjust giving the specs to the
clients and say go to refit.
We had to actually do it forthem.
(26:36):
We had to help them get thecorrect UPIs, not just valid
UPIs.
So we are all looking forwardto getting some rest now,
ironing out any issues with theclients and next year come back.
We see a lot of demand alreadyin reconciliations, so everybody
has a way to report nowadays.
But now moving to data quality,everybody wants like a live
(26:59):
reconciliation tool, especiallywhen they delegate reporting to
their counterparties.
So next year it will bechallenging, but first we need a
break.
I think all of us Some peoplelost weight, like Nick.
Some people like sleep, like me.
Oh well, looking forward toChristmas holidays.
Speaker 1 (27:20):
And joining us here we have Grant Haley, michael
McAlinda and Amanda McAllisterfrom First Derivative.
It's been a huge year forderivatives reporting, but
actually that feels like we'reunderselling it.
It's kind of been a huge what?
15 years for derivatives, uhreporting.
(27:42):
The whole industry has beentransformed.
I mean you must have seen a lotof changes.
Did you ever think we would getto the end of the refit process
?
Speaker 13 (27:51):
uh, I started in 2014 in this and I've been doing
it for the last 10 years and Ithought in 2017 the regulatory
pipeline was was drying up, um,but here we are in 2024.
Speaker 1 (28:03):
It's still as strong as it was then and continues to
to get more and more complex andchallenging and in terms of
that, michael, I want to ask youum, there's still variation,
isn't there, across the eubetween what is deemed a
derivative by national competentauthorities.
Do you think that is going tobe, uh, settled?
(28:24):
Do you think that there'll beagreement, finally, or
uniformity, over things like fxforwards?
Speaker 14 (28:31):
no, I think we hope so.
Um, there's always differentinterpretations across you
countries and I think that'swhere the challenge is, with a
lot of different companies and,again, a lot of countries as
well.
And, as one of the speakerssaid earlier on, we're no longer
on different pages completely,we're just on different or I
think he said it was differentlanguages, but now we're in a
(28:53):
slightly different dialect.
So I think that's where we'reat and hopefully it gets closer
together going forward.
Speaker 1 (29:01):
And I mean looking out as well, amanda, looking out
.
2024 was a crazy year as aderivatives consulting firm.
You've had, obviously,inundation of work.
Tell me what about sort of 2025?
Is it going to get a bit calmera a bit smoother, or do you
think actually that volume ofbusiness is going to ramp up as
(29:22):
more market participants fall inscope of the regulation and
more actually want to engage inthe derivatives market?
Speaker 15 (29:29):
no, I only think it's gonna get.
I think it'll be.
It'll not be as fast paced, butit'll be a steady pace,
especially like from today, Itake.
Reconciliation was a big, bigtopic and a good data quality
which I definitely think a lotof firms, a lot of people are
going to have to look into andthat'll cause us a lot of issues
that we'll all see coming upand maybe more inputs to look
(29:51):
into that.
So I don't think we're slowingdown anytime soon.
I don't think we're going asfast paced because we don't have
a hard deadline, but weseriously need to look into the
data quality of stuff for suretalking of data quality.
Speaker 1 (30:03):
I'm gonna ask you about that now and I'm gonna ask
grant, uh, michael and amandato make some predictions here.
204 fields of data do you thinkthat's an end to it or do you
think there's going to be moredata fields emerging?
Will there be a refit?
Refit sometime in the nextcouple of years?
Speaker 13 (30:37):
organization.
The regulator wants to getvisibility of and understand how
these work.
So you know they need the datato do that and 204 fields.
If it does or doesn't achievethat objective, um will be down
to whether that increases in thefuture michael, what about
yourself?
Speaker 1 (30:47):
do you see, uh, the fields going up anytime soon, or
do we need to get the qualityup first?
Speaker 14 (30:53):
no, I definitely think the fields will definitely
go up um at some point, like,for this, for example, crypto
there I'm sure there's a lot,lots of fields they can think of
, that they'll start adding um.
Speaker 1 (31:02):
But yeah, game quality something that probably
should be focused on first,first and foremost and amanda uh
, you, I'm gonna guess you'rethinking the fields are going up
and michael introduced cryptointo the conversation.
Now nick bruce, who's head ofbusiness development at reg cr,
my co-host on the show.
He's told me I can't keepasking people questions about
crypto and nerdy cyber stuff,but just because I'm interested
(31:23):
in it.
But what's your take on that?
The Bitcoin is riding high.
We've got a Bitcoin positiveadministration potentially
coming in to the US, and the EUhas been pretty crypto positive.
There's a lot of talk as wellabout central bank issued
digital currency.
Are we going to see data fieldsgoing up and will crypto
feature?
Speaker 15 (31:43):
So, first of all, I like to think I'm an optimist.
So I'm going to take Nick'sstance on this.
He said once the quality comesup, he sees maybe fields become
a redundant because the qualityis so good and we can already
drag that from there.
So I'm going gonna say no, Idon't see it going up.
(32:03):
But I'm also a realistic person.
So, yeah, crypto willdefinitely come into the
regulation.
It needs to.
It doesn't make sense if itdoesn't.
So overall, I see the currentfees coming down, but also
crypto fees coming in, but I'moptimistic.
Speaker 16 (32:11):
So overall I think it might stay the same I think
in general, yes, the effort wasunderestimated, so people came
into this.
Some participants treated it asan IT project, which definitely
was not.
It was a lot broader than thatand I think that led to issues
in the go-live and in theimplementation.
I think it's stabilized andit's stabilizing more and more,
(32:35):
but a mirror is a gift thatkeeps on giving.
I just say so.
It still requires some work.
We see now and we heard thismorning the view from regulators
on data quality indicators.
That remains important and Ithink that's a continuous effort
to continue to improve that.
Speaker 1 (32:51):
I mean when you're informing your own plans and
advising clients.
One of the problems seemed tohave been that the synthetic
data and the testing processesweren't quite matched up with
the sort of day-to-dayoperational challenges that
reporting from Mir would cause.
So do you think there needs tobe a bigger focus on testing
(33:11):
before new regimes kick in?
Speaker 16 (33:14):
Good testing is always great.
I think that a lot ofcounterparties also struggled
with the timing.
Everyone was late to have tochange, so it was ESMA who did
the last minute change in therequirements.
Let's not forget about that one.
For those who remember, therewas the system providers, who
were struggling to deliver ontheir side as well, both on the
(33:36):
bank side and on the assetmanager side, and also the third
parties.
Everyone was struggling to beready.
That meant that a lot of thetesting actually happened in the
past, the last two, three weeks.
That was a concern forregulators.
That was a concern for everyone.
To be honest, I think,considering that and ignoring
the first week, I would say,where people were stabilizing
(33:57):
the process in getting reportsout, it went quite well, given
all of the circumstances.
Maybe the lesson learned isthat everyone's budgeting far in
advance and regulators need topay attention to not impose too
many changes too swiftly andhave stability in the
requirements.
Speaker 1 (34:21):
And finally, what's the outlook for 2025 going to be
?
Is it going to be the calmafter the storm or we've got
DORA in two months?
There will be other thingshappening SFTR 2.0, the broader
changes that come from a mere3.0, beyond the derivatives
trading side of it.
Do you think 2025, the industrywill get a chance to catch its
breath or is it going to be moreof the same?
I think it's going to get it.
Do you think 2025,?
Speaker 16 (34:38):
the industry will get a chance to catch its breath
, or is it going to be more ofthe same?
I think it's going to get worse.
And you mentioned Dora.
I think anyone who's in abanking environment will
struggle with instant paymentsat the same time.
Let's not forget those are bothcoming in January.
We have retail investmentstrategy, we have Mifid 3.
We have Amir 3.
And retail investment strategy,we have mythid 3, you have amir
(35:00):
3, uh, and actually mythid 3and mythir 2 hold some nasty
surprises as well on technicalside.
So I think it's going to be atleast as intense as 2024 okay,
kevin demayas, thank you verymuch this is john kernan from
register uk.
Speaker 17 (35:14):
This is John Kernan from Registrar UK, sending a
message from St Mary Axe inLondon.
I'm sat here with my reindeerChristmas jumper on, just about
to go with the team for ourChristmas lunch and I just
wanted to say thanks to ourclients during what has been a
particularly busy year for allof us.
(35:36):
I hope you will get the chanceto unwind a bit, spend some time
with your loved ones, and I'mlooking forward to coming back
in January and rolling out someof the client-driven development
in 2025, which we showcased atour client event in Madrid a
couple of weeks ago.
So, with all that said, all thevery best.
(35:57):
Thanks again and uh, lookingforward to coming back on the
roundup sometime in uh, injanuary.
Speaker 1 (36:04):
Take care well, that's it.
We are at the end of anothershow and the end of another year
.
Yes, and what a year it was.
As we've heard in this show andour last one, it's been quite a
ride for the marketparticipants, for the market
infrastructures, uh, for themanagement companies, for the
(36:25):
consultants, for the dataexperts and the many, many
people who've helped totransition, uh, the derivatives
markets of europe uh into, uh, amere refit, and I think
everyone is glad it's happening.
And you know, looking back, itmay have been challenging, but
it's obviously been a hugesuccess and it's got everyone
fired up and ready for anotherexciting year of change.
(36:49):
And we'll be talking about thatnext year when we come back, uh,
with the final few episodes ofseason 10 and then, of course,
as we roll into season 11 of theshow.
Yes, season 11.
Over 110 episodes will havepassed by then, and we have been
through sftr and amir and we'vetalked about dora, we've talked
(37:10):
about all kinds of differentchallenges facing the market,
from esG, collateral right theway through to open new data
standards, online executables,you name it.
We've had it, thanks, of course, to Isla and Ikma and all the
people who've joined us on theshow, from many different market
participants, managementcompanies, regtech vendors and
(37:32):
everyone who's a part of thebroader six group and RegistryR
community, and I guess all thatremains, then, is for me to ask
you again to join us on ourlinkedin page that's linkedincom
slash company, slash register,hyphen tr, where you can network
with everyone who you've justheard in this show, plus, of
course, nick and john and paulaand thomas and all the other
(37:53):
members of the register crew andas well.
Uh, do make sure that you get abit of a break, if you can, over
the holiday season.
If you're going to becelebrating christmas, we hope
you have a happy one.
If you're not, then we hope youget a decent break.
And if you're in the office, asso many of you were last year,
with a mere refits deadlinerolling in, well, I hope the
(38:16):
sandwich vending machine has gotsomething festive in it for you
and, in the meantime, for me,andrew keith walker, and from
our producer, manuel morenogarcia.
Uh, everyone at the uh sixgroup and everyone here in the
virtual studio helps bring thisshow together and make it happen
.
Have a happy festive season, ahappy holiday, uh, and a very
(38:37):
happy new year, and we'll seeyou in January 2025.
Bye-bye.
this podcast is brought to you by register,
which is a member of the sixgroup and features members of
the register team and specialguests expressing their personal
opinions, not the opinions ofregister as an organization.
There is no representation madeas to the accuracy or
completeness of information inthis podcast, and nor should it
be taken as legal tax or anyother professional advice.
(00:29):
Hello and welcome back to theRegistry, our roundup podcast
for part two of our Madrid liveevent special that was recorded
at the Palacio de la Balsa acouple of weeks ago during a
very, very successful day ofinsights and analysis from
(00:53):
industry leaders, marketparticipants and experts on
regulatory reporting on thestate of 2024.
And if you haven't heard thatepisode, do go back in our feed.
It was the last one that cameout.
You can find it on our LinkedInpage that's linkedincom slash
company, slash Regis hyphen TR,and that was looking back at
(01:14):
2024.
Today's episode is all aboutlooking forwards to 2025 and
what regulatory reporting hasgot in store for us there.
And who better to kick it offthan Thomas Steinman, the CEO of
Registriar SA, and he had thisto say about the year that's
gone and the year that's comingWell, that's a good question.
Speaker 2 (01:37):
My hope is consolidation settling down and
seeing what we have put in placeis working, is consolidated,
we're delivering what we saidwe're going to deliver and for
me, that is my hope for 2025.
Listening to some of the panels, listening to future dates, I'm
(01:59):
not so convinced that this hopefinally is reality.
So there are some challengesongoing.
Convinced that this hopefinally is reality.
So there are some challengesongoing.
We heard some people talk aboutrumors for other regulations
with changes coming up.
So it will be between myunderstanding, between my hope
of consolidation and my fear ormy looking forward view of now
(02:21):
turning into pending topics weare having and pending topics
the market are having theregulator, the Saarwagen, and
from there to develop and tolook into these future things.
So hopefully the balance ismore a little bit towards the
consolidation than to startingalready future pieces.
We are all a little bitexhausted.
I think the market is exhausted, the regulator we heard it and
(02:44):
if you want to read a little bitbetween the lines, I think they
still have a lot to do beforethey can manage all the data
they have now.
So from that perspective, Ithink they have some time to
breath, to sit back and to seewhat they are going to do with
all this data they are havingnow.
And we, I think, also deserveit a little bit now.
And we, I think, also deserveit a little bit.
Speaker 1 (03:05):
The market, the clients, the reporting entities,
the TRs now to, as I said,consolidate on what we have
built and taking from there.
That would be my view andlooking towards 2025, obviously
you should get a holiday.
But are you going to get aholiday?
Are you going to be in theoffice getting ready for
whatever may come from changesoutside the EU?
(03:25):
Perhaps with a deregulatorygovernment in the US, is that
going to mean that everyone inEuropean infrastructure has got
a tougher job to do?
Speaker 2 (03:37):
Well, for sure, we will take holidays, and several
people said it also from theclient side, working weekends,
not having always good nights,all this, I mean, has also a
limit.
So from that perspective andthat is what I said before, the
hope of consolidating thatpeople can, I would not say,
rest, but can recover from whatthis year has been, from a
(04:03):
workload, from a stress level,and from that perspective I do
hope, as I said before, that wecan recover a little bit before
the new challenges are coming up.
I hope it will not only be ahope, but we will see what
future brings.
Thomas Simon, thank you verymuch.
You're welcome.
Thanks to you, thanks for youfor coming, thanks to not
(04:26):
exactly sure who's going tolisten to that, but thanks to
everyone who joined our event,because I think it was a great
event in a great location.
So thanks a lot to everybodyfor making it happen.
Thanks.
Speaker 1 (04:40):
Thomas Steinman there Now.
Someone else I managed to catchup with at the event, who's an
old friend of the Registry ArtRoundup podcast, is, of course,
marie Carmen Michon, who is thechief compliance officer of
Registry Art and, as you canimagine, compliance officers
have had a busy year keeping upwith all the regulatory
implementations and it lookslike they're going to have a
busy year in 2025 as well, asthey keep up with Dora and a
(05:04):
whole new wave of changes aroundthe world.
Here's Mary Coleman now.
Speaker 3 (05:10):
I'm happy to say that we are heading towards a
stabilization period and we allwish to face 2025 with much more
calm and less challenges ahead.
Speaker 1 (05:26):
You don't get to rest , do you?
Because we've got Dora in twomonths.
That is going to be another bigcompliance challenge.
I was going to say headache butchallenge.
But again, for lots and lots ofmarket participants, they're
only just getting over refit.
Do you think Dora is going tohit them equally as hard?
Speaker 3 (05:45):
well, possibly not equally, because, um dora is
more a transversal regulationthat brings requirements in many
different areas of theregulation, but not so much, uh,
specific, in the technologicaldevelopment.
So here it's more a holisticimplementation regarding InfoSec
, management of ICT providers,business continuity, cyber
(06:12):
testing and, yeah, and theninternal training of both senior
management and employees.
So it's going more to thegrounds, to the foundations of
the strategies of ICT riskmanagement.
Speaker 1 (06:34):
Now, one of the really nice things, of course,
about client events is you getto network with the whole team
and I managed to catch up withsome of the people who haven't
been on the show before butcertainly be on it again and
onboarding for clients obviouslyis a huge issue.
It's a major part of servicedelivery for any organization
and certainly where there are somany new financial entities,
(06:56):
non-financial entities andmarket participants that are in
scope of changing regulation,onboarding has become really
important within the regulatoryreporting industry, and who
better to take us through thosechallenges than Sara Gill, who
is one of our onboardingofficers?
Speaker 4 (07:19):
I mean, of course, it's going to be another busy
year for us.
We've got a lot of projectsahead, which you will know on
the next future, but yeah, it'sabout all like improving it,
stabilizing it.
Indeed, I mean from myperspective, which is about
documentation will make.
It will make a lot ofdocumentation disappear and
(07:43):
everything will be on theplatform, so so you'll forget
about physical documentation,for example.
Speaker 1 (07:50):
And so streamlining user experience is going to be a
big part of it.
And finally, I've got to askyou about Dora how are you
expecting the phones to melt inthe customer service department
when the deadline hits inJanuary?
Speaker 4 (08:05):
No, no, no, no.
I don't think in this case.
I mean, I think the importantpart, the critical one, has been
Emil Refit.
This will be much smoother.
Speaker 1 (08:15):
So, yeah, I think it will be a very good year for us
from the participants'experience as is traditional on
the Registry Art Roundup podcastfor our December episode, the
(08:37):
strains of a little bit oflighthearted festive jazz
playing in the background herein the virtual studio.
Because, of course, it is theend of the year and the holiday
season is upon us and, whetheror not Christmas is your
tradition, or you get a holidayor, like so many people working
in the world of financialservices and reg tech, you won't
be getting a holiday.
Or, like so many people workingin the world of financial
services and reg tech, you won'tbe getting a holiday at
Christmas.
You'll be in the office with asandwich and a glass of
champagne, maybe with your linemanager.
We have a few Christmasmessages for you from the
(09:01):
virtual studio crew, and here'sone from someone who's head of
client services and, of course,works with Sarah Gill and the
onboarding team and across thewhole client services remit
paula lopez, and she had thischristmas message for you all
(09:22):
grateful to have spoken at theannual client event for the very
first time.
Speaker 5 (09:26):
I'm very happy and privileged to have had the
opportunity to join such paneldiscussion with some great
speakers such as Felicity fromAVN AMRO, roberto Bermejo from
CNMV, tim Hartley from Kaizenand, of course, our moderator,
joan Kernan, sharing our ownexperiences pre during and
post-reference Go live.
(09:46):
It has not been an easy path,but I think we made it happen.
Obviously, still plenty of roomfor improvements and releases
to go, but we will get there.
Big thank you to everyone whojoined us during this session
and to all VME6 colleagues whomade this possible and to all
participants for the valuableinsight and attendance.
(10:07):
Taking this opportunity to wishyou all the best for this next
2025, enjoy a joyful holidayseason and, switching back to my
native language, I wish you alla happy holiday, a merry
Christmas around you and aprosperous new year 2025.
Speaker 1 (10:44):
Greetings to all now, for a couple of years, and when
it landed, yep, it was a bigone and it's been a huge wave of
disruption across the wholeindustry in europe and perhaps
less so in the uk, but then wedid have a bit longer to get
ready for that, as john kernexplained in our last show.
Do make sure you go back andtake a listen to that.
(11:05):
By the way, if you missed it,lots of great content there all
about, uh, the lessons that havebeen learned.
By the way, if you missed it,lots of great content there all
about the lessons that have beenlearned by the whole industry
and the regulators in 2024.
However, of course, in 2025,there's a lot more regulation
happening all over the world,from Japan to Singapore, from
MIFID to DORA.
There's lots on the horizonmore rewrites, more reviews,
(11:27):
more consultations and more datafields to be reported.
And taking a look at those, wehave Ozrina Juskiviski, the
Lithuanian powerhouse, who joinsus from the institutional
relations team.
We have Pilar Martinez, fromthe public affairs team, looking
at the evolution of theEuropean capital market now the
Savings and Investments Unionand what that could mean for
(11:48):
regulatory reporting and, of, ofcourse, changes with
deregulatory friendlyadministration.
Coming in the us, we havemariana longabardo, who is going
to be looking at the broadermarket situation.
She is a specialist inanalyzing market developments
and trends and all the dataindicators for 2025.
(12:11):
And finally, a few thoughtsfrom Xi Tili, who is from Eurex
Clearing, about the growth ofclearing and what this might
mean to market participantstrading across from the EU to
the US.
So let's kick off with Ozrinafrom the EU to the US.
Speaker 6 (12:31):
So let's kick off with Ozrina.
Dora is coming next.
So we have already on 17th ofJanuary 2025.
So less than two months.
We'll have to be compliant likeall the other European Union
institutions.
You know this is big, that iscoming and we are almost ready
for that.
Speaker 1 (12:45):
Now I've been asking people if 2025 is going to be
nice and smooth, or if 2025 isgoing to be nice and smooth or
if 2025 is going to be achallenging one.
What do you think from theinstitutional relations point of
view?
Speaker 6 (12:57):
Definitely challenging, as always.
You know, we are regulatoryservices, so there is always
something going on.
We have DORA.
Now we also have FinPRAC review, so there is a refit on FinPRAC
and there are rumors about SFTR2.0.
So we don't know if it's goingto come also next year, apart
from other consultation papersthat we're already awaiting from
our supervisors.
(13:18):
So I would say it's going to bechallenging every year.
Speaker 1 (13:22):
And are you going to get a Christmas break this year,
or are you going to be in theoffice with a snack from the
vending machine, wading throughmountains of paper?
What's it going to be like foryou?
Speaker 6 (13:34):
I'm going to have my Christmas break.
Definitely, I'm going to myhometown, to Lithuania, to my
country.
So definitely, at least for afew days during Christmas
Hopefully there's no whiteChristmas I'm going to enjoy
back home in Lithuania.
Get ready and be back for Doraand join back home in Lithuania.
Get ready and be back for Dora.
Speaker 1 (13:52):
Now I've managed to find a quieter corridor to
interview our next guest, pilarMartinez, from the public
affairs team at BME6.
And, pilar, you were on thefirst side.
Chat today about regulatorychange, what's on the horizon,
what's coming, and also somereally interesting European
issues which are adjacent to theworld of market infrastructure,
(14:14):
but perhaps we don't always getthe chance to talk about.
Speaker 7 (14:17):
Yeah, well, indeed, the CMU action plan is nothing
new.
It's nothing outstanding on ourtables that you have never
heard about, but it is the thirdtime that we have these plans
on our desks.
First CMU Action Plan tookplace in 2015.
Second one was 2020, and nowwe're heading for the third
(14:39):
block.
Cmu Action Plan is the toolthat the Commission has to start
and to finalize the CapitalMarkets Union, which is
basically having all the capitalmarkets in the EU functioning
as one single market andbringing in this time, with this
new addition, savings andinvestments.
(14:59):
This goes very well with theinitiatives that we had from the
previous commission aboutretail investment strategy,
benchmarks and another bunch ofregulations that we will see.
I think the most interestingpart about this is the two
reports that we saw early thisyear Draghi report and Leta
report.
They deep dive into theproblems and the challenges that
(15:20):
the CMU will be facing for thenext political cycle, and I
really do think they will besetting the tone for the next
action plan.
Speaker 1 (15:28):
Now tell us a bit more about life from your desk,
because you're involved.
It's not just about publicaffairs.
It's also about strategicplanning for decisions within
the group, looking forward andweathering uncertain times
politically and economically and, let's face it, they couldn't
be more uncertain than they arenow, with so much change, more
(15:48):
elections than they've ever beenin a two year period and, of
course, a new administration inthe US who has a sharp focus on
deregulation.
So tell me, I mean, how do youleave the office?
Speaker 7 (16:03):
Well, that's a very good question, and actually the
US question is the milliondollar one, if you allow me this
one question, and actually theUS question is the million
dollar one, if you allow me thisone.
Um, no, certainly.
Uh, we had the voting year, andthis will materialize in a lot
of changes, not just from us,but from other jurisdictions as
well, and I think it is.
It is a job for the EU to liveup to the expectations, to
maintain this work path thatthey have been following on
(16:26):
strategic autonomy and onbecoming a truly competitive
bloc versus other jurisdictions.
And since you mentioned and youdidn't, but you did the US
elections, I'm guessing, I thinkthat's where the EU really
needs to put a focus.
We still don't know the office,we still don't know what the
cabinet will look like, butwe're hearing rumors already,
(16:47):
and it is already a time for theCommission, for the parliament
themselves, to start working andstart thinking about policies
that can reinforce thisstrategic autonomy without
losing the partnerships and therelations that we already have
with the US.
Speaker 1 (17:05):
Well, I've managed to escape the soft jazz and
grabbed Mariana Longobardo, whois a macroeconomic specialist.
You gave a great talk becauseyou really pulled out and gave
us the helicopter view of thechallenges facing market
participants in the EU.
And, of course, number one is achange in the regulatory
(17:26):
outlook coming from the US andfrom a Trump presidency.
What do you think might be thelikely market disruptions or the
market positives from the newadministration coming in in
January?
Speaker 8 (17:40):
Well, of course, everything will depend on how
quickly those policies will beimplemented.
There is a little bit ofskepticism in that he's going to
actually implement everythingthat he's promising or that he's
promised in his campaign, andhe's also kind of switching
speeches.
For example, two days ago henominated the secretary of
(18:01):
treasury a person from themarket.
He just decided that he wasimplementing tariffs on Mexico
and on Canada in the day one ofthe administration.
So it's hard to decide which isreally rhetoric and which is
exactly going to be implemented.
What we know that in general,there is going to be a more
(18:22):
protectionism trend and it'sgoing to reshape global trade
and global supply chains.
What we think as an opportunityin the first place.
It can be like a challenge for,for example, going to reshape
global trade and global supplychains.
What we think is an opportunityin the first place, it can be
like a challenge for, forexample, export economies like
China or even emerging markets.
But it's also true that in thelast administration, since the
(18:44):
last administration Trumpadministration China reduced its
exposure to the US acrossdifferent economies.
So it can be a newconfiguration of the global
system, the global trade system.
Speaker 1 (19:00):
And you're also talking about the outlook for
GDP growth across the EU, whichlooks like it's slowing, but
there have been some realsuccess stories, like Spain.
Speaker 8 (19:11):
Yeah, sure, actually, in the past years Europe
struggled in terms of GDP growth.
This year we are going to havea modest GDP growth and the
projections is that it's goingto increase for the next two
years.
But Spain has been a goodsurprise.
In fact, spain has a lot ofstrengths in terms of domestic
consumption and also governmentconsumption and the tourism
(19:34):
sector.
The tourist sector is the keydriver this year, I would say,
with record levels of touristscoming to Spain and also
spending a lot of dollars here.
That definitely helps theeconomy and also some
investments that the governmenthas made in improving
(19:56):
competitiveness, especially inthe services sectors.
But I would say that the keydriver from the Spain economy
it's domestic consumption.
Speaker 9 (20:06):
So actually EU and US , they do exactly the different
way.
For example, in EU everythingis very good, prepared and
regulated and in the US theyjust leave the market run and if
they say there's somethingwrong and they will come back
and say, oh, it was not good, itshould be prohibited.
(20:26):
So for them it looks likesomething like trial and fail
and then learning by doing.
But in EU, I believe they dohave a different philosophy.
They want to have the marketregulated so that every
participant in a market, they dohave the security and they do
(20:48):
have the certainty what theycould do, what they are not
allowed to do.
I believe that's a differentapproach.
It could be the case that itlooks chaotic in the US area,
but it's not necessary to be bythe end of the day.
But of course I cannot foreseethat much, but it's at least my
(21:09):
opinion.
Speaker 1 (21:09):
Thank you for the question and that was she tilly,
from eurex clearing, summing upa sentiment that was expressed
on many of the panels during theday at the madrid event that
you know there are changes afootand a change in regulatory
outlook between the eu and theus, which could provide a lot of
(21:31):
opportunities for marketparticipants and open up new
markets, but also raise somechallenges as well for the world
of regulatory reporting.
Uh, wise words there and uh,yeah, we're all watching that
one, she moving on.
Uh, of course it's time to hearfrom another member of the
virtual studio crew, mr nicholasbruce, the voice of reason,
(21:52):
himself the head of businessdevelopment, my statistically
most regular co-host on the show.
Nick's been with us since thebeginning and is a very, very
busy man raring to go with thenew Registrion platform in the
new year, but he found time inhis busy globetrotting schedule
(22:12):
to send this Christmas messageto you all.
Speaker 10 (22:17):
Hello everyone.
It's Nick from the Roundup.
I just really wanted to wisheveryone a very Merry Christmas,
a Happy New Year.
Whatever you're doing, I hopeyou have a fantastic time.
I think for everyone, 2024 hasbeen a period of change,
challenges, so let's hope 2025is a quieter year, and I'm just
(22:41):
wishing everyone a reallyrestful time over this festive
period.
Take care and speak to everyonein the new year.
Speaker 1 (22:51):
One of the things I like most about the annual
client event is I get to leavethe virtual studio.
Like most about the annualclient events, I get to leave
the virtual studio, put on someoutside clothes and go and mix
with regtech, vendors, withmanagement companies and, of
course, most importantly, marketparticipants All those people
who exist as part of theregulatory reporting community
(23:11):
and find out how things havebeen from their side.
And this year was no exception.
I managed to catch up withAladdin Banuna from Quint
quintet private bank, withandreas roussos from 0.9.9.
Of course have been a guest onthe show at last year's live
event.
It was great to meet, uhandreas.
This year I also managed tocatch up with grant haley,
(23:31):
michael mcalinda and amandaMcAllister from First Derivative
and get a real feel for thesort of consulting work that's
going on in such a busy space.
And, of course, kevin DeMeyer,who has been on the show many
times in the past, an expert inall things regulatory reporting
and data quality from Deloitte,and Kevin rounds us off with
(23:54):
some really interesting insightsinto 24 and I ask him the
crucial question about 2025 isit going to be smooth sailing or
is there more choppy water onthe horizon.
Speaker 11 (24:04):
Let's start with aladdin bernouna from quintet
private bank I think it was likeunderestimated before because
because we get comfortable withAMIR, so yeah, we have some
fields to change, that's all.
So we will be quiteunderestimating this project.
But once we try to puteverything on together and try
(24:28):
to adapt our new system, so werealize that there is a lot of
issues and especially alsoissues in data.
So AMIR is not only help us tojust submit in a reporting, but
also to review the way we aredoing the things and the way how
we can challenge our internaldata.
(24:49):
2025 is bringing a lot ofchallenges.
We can see already there is alot of change on the political
side, especially in the US.
The wars around the world, sothe market volatility,
especially also on thecryptocurrencies out there, are
(25:12):
now impacting also the marketRegulatory side also, we have a
lot of changes coming, lookingfor Mifertree, csdr, sftr, so
DORA also, as we mentioned, andthis is all the things.
I think that 2025 will be quitechallenging for us and for our
(25:35):
clients, but we are doing ourbest to relieve these challenges
.
Speaker 1 (25:40):
And also joining me, andreas Roussos from Point9.
Now, point9, we've had you onthe show before different
representatives talking, ofcourse, about your tech
solutions, helping people withtheir regulatory reporting, the
burden of the back office,because we often talk about this
idea that everyone's a tier onebank with a giant back office
and an endless budget, but ofcourse, we know there's lots of
(26:02):
smaller financial counterpartiesthat have reporting obligations
that just can't scale to meetsomething the size of EMEA.
Have you had a great year, orwere you looking forward to a
calmer 2025?
Speaker 12 (26:15):
It's been a very, very challenging year.
Uk and EU refits, rewrites inSingapore, in America, in
Australia, new clients we had tohelp because we offer a managed
service right.
So for us it's not a matter ofjust giving the specs to the
clients and say go to refit.
We had to actually do it forthem.
(26:36):
We had to help them get thecorrect UPIs, not just valid
UPIs.
So we are all looking forwardto getting some rest now,
ironing out any issues with theclients and next year come back.
We see a lot of demand alreadyin reconciliations, so everybody
has a way to report nowadays.
But now moving to data quality,everybody wants like a live
(26:59):
reconciliation tool, especiallywhen they delegate reporting to
their counterparties.
So next year it will bechallenging, but first we need a
break.
I think all of us Some peoplelost weight, like Nick.
Some people like sleep, like me.
Oh well, looking forward toChristmas holidays.
Speaker 1 (27:20):
And joining us here we have Grant Haley, michael
McAlinda and Amanda McAllisterfrom First Derivative.
It's been a huge year forderivatives reporting, but
actually that feels like we'reunderselling it.
It's kind of been a huge what?
15 years for derivatives, uhreporting.
(27:42):
The whole industry has beentransformed.
I mean you must have seen a lotof changes.
Did you ever think we would getto the end of the refit process
?
Speaker 13 (27:51):
uh, I started in 2014 in this and I've been doing
it for the last 10 years and Ithought in 2017 the regulatory
pipeline was was drying up, um,but here we are in 2024.
Speaker 1 (28:03):
It's still as strong as it was then and continues to
to get more and more complex andchallenging and in terms of
that, michael, I want to ask youum, there's still variation,
isn't there, across the eubetween what is deemed a
derivative by national competentauthorities.
Do you think that is going tobe, uh, settled?
(28:24):
Do you think that there'll beagreement, finally, or
uniformity, over things like fxforwards?
Speaker 14 (28:31):
no, I think we hope so.
Um, there's always differentinterpretations across you
countries and I think that'swhere the challenge is, with a
lot of different companies and,again, a lot of countries as
well.
And, as one of the speakerssaid earlier on, we're no longer
on different pages completely,we're just on different or I
think he said it was differentlanguages, but now we're in a
(28:53):
slightly different dialect.
So I think that's where we'reat and hopefully it gets closer
together going forward.
Speaker 1 (29:01):
And I mean looking out as well, amanda, looking out
.
2024 was a crazy year as aderivatives consulting firm.
You've had, obviously,inundation of work.
Tell me what about sort of 2025?
Is it going to get a bit calmera a bit smoother, or do you
think actually that volume ofbusiness is going to ramp up as
(29:22):
more market participants fall inscope of the regulation and
more actually want to engage inthe derivatives market?
Speaker 15 (29:29):
no, I only think it's gonna get.
I think it'll be.
It'll not be as fast paced, butit'll be a steady pace,
especially like from today, Itake.
Reconciliation was a big, bigtopic and a good data quality
which I definitely think a lotof firms, a lot of people are
going to have to look into andthat'll cause us a lot of issues
that we'll all see coming upand maybe more inputs to look
(29:51):
into that.
So I don't think we're slowingdown anytime soon.
I don't think we're going asfast paced because we don't have
a hard deadline, but weseriously need to look into the
data quality of stuff for suretalking of data quality.
Speaker 1 (30:03):
I'm gonna ask you about that now and I'm gonna ask
grant, uh, michael and amandato make some predictions here.
204 fields of data do you thinkthat's an end to it or do you
think there's going to be moredata fields emerging?
Will there be a refit?
Refit sometime in the nextcouple of years?
Speaker 13 (30:37):
organization.
The regulator wants to getvisibility of and understand how
these work.
So you know they need the datato do that and 204 fields.
If it does or doesn't achievethat objective, um will be down
to whether that increases in thefuture michael, what about
yourself?
Speaker 1 (30:47):
do you see, uh, the fields going up anytime soon, or
do we need to get the qualityup first?
Speaker 14 (30:53):
no, I definitely think the fields will definitely
go up um at some point, like,for this, for example, crypto
there I'm sure there's a lot,lots of fields they can think of
, that they'll start adding um.
Speaker 1 (31:02):
But yeah, game quality something that probably
should be focused on first,first and foremost and amanda uh
, you, I'm gonna guess you'rethinking the fields are going up
and michael introduced cryptointo the conversation.
Now nick bruce, who's head ofbusiness development at reg cr,
my co-host on the show.
He's told me I can't keepasking people questions about
crypto and nerdy cyber stuff,but just because I'm interested
(31:23):
in it.
But what's your take on that?
The Bitcoin is riding high.
We've got a Bitcoin positiveadministration potentially
coming in to the US, and the EUhas been pretty crypto positive.
There's a lot of talk as wellabout central bank issued
digital currency.
Are we going to see data fieldsgoing up and will crypto
feature?
Speaker 15 (31:43):
So, first of all, I like to think I'm an optimist.
So I'm going to take Nick'sstance on this.
He said once the quality comesup, he sees maybe fields become
a redundant because the qualityis so good and we can already
drag that from there.
So I'm going gonna say no, Idon't see it going up.
(32:03):
But I'm also a realistic person.
So, yeah, crypto willdefinitely come into the
regulation.
It needs to.
It doesn't make sense if itdoesn't.
So overall, I see the currentfees coming down, but also
crypto fees coming in, but I'moptimistic.
Speaker 16 (32:11):
So overall I think it might stay the same I think
in general, yes, the effort wasunderestimated, so people came
into this.
Some participants treated it asan IT project, which definitely
was not.
It was a lot broader than thatand I think that led to issues
in the go-live and in theimplementation.
I think it's stabilized andit's stabilizing more and more,
(32:35):
but a mirror is a gift thatkeeps on giving.
I just say so.
It still requires some work.
We see now and we heard thismorning the view from regulators
on data quality indicators.
That remains important and Ithink that's a continuous effort
to continue to improve that.
Speaker 1 (32:51):
I mean when you're informing your own plans and
advising clients.
One of the problems seemed tohave been that the synthetic
data and the testing processesweren't quite matched up with
the sort of day-to-dayoperational challenges that
reporting from Mir would cause.
So do you think there needs tobe a bigger focus on testing
(33:11):
before new regimes kick in?
Speaker 16 (33:14):
Good testing is always great.
I think that a lot ofcounterparties also struggled
with the timing.
Everyone was late to have tochange, so it was ESMA who did
the last minute change in therequirements.
Let's not forget about that one.
For those who remember, therewas the system providers, who
were struggling to deliver ontheir side as well, both on the
(33:36):
bank side and on the assetmanager side, and also the third
parties.
Everyone was struggling to beready.
That meant that a lot of thetesting actually happened in the
past, the last two, three weeks.
That was a concern forregulators.
That was a concern for everyone.
To be honest, I think,considering that and ignoring
the first week, I would say,where people were stabilizing
(33:57):
the process in getting reportsout, it went quite well, given
all of the circumstances.
Maybe the lesson learned isthat everyone's budgeting far in
advance and regulators need topay attention to not impose too
many changes too swiftly andhave stability in the
requirements.
Speaker 1 (34:21):
And finally, what's the outlook for 2025 going to be
?
Is it going to be the calmafter the storm or we've got
DORA in two months?
There will be other thingshappening SFTR 2.0, the broader
changes that come from a mere3.0, beyond the derivatives
trading side of it.
Do you think 2025, the industrywill get a chance to catch its
breath or is it going to be moreof the same?
I think it's going to get it.
Do you think 2025,?
Speaker 16 (34:38):
the industry will get a chance to catch its breath
, or is it going to be more ofthe same?
I think it's going to get worse.
And you mentioned Dora.
I think anyone who's in abanking environment will
struggle with instant paymentsat the same time.
Let's not forget those are bothcoming in January.
We have retail investmentstrategy, we have Mifid 3.
We have Amir 3.
And retail investment strategy,we have mythid 3, you have amir
(35:00):
3, uh, and actually mythid 3and mythir 2 hold some nasty
surprises as well on technicalside.
So I think it's going to be atleast as intense as 2024 okay,
kevin demayas, thank you verymuch this is john kernan from
register uk.
Speaker 17 (35:14):
This is John Kernan from Registrar UK, sending a
message from St Mary Axe inLondon.
I'm sat here with my reindeerChristmas jumper on, just about
to go with the team for ourChristmas lunch and I just
wanted to say thanks to ourclients during what has been a
particularly busy year for allof us.
(35:36):
I hope you will get the chanceto unwind a bit, spend some time
with your loved ones, and I'mlooking forward to coming back
in January and rolling out someof the client-driven development
in 2025, which we showcased atour client event in Madrid a
couple of weeks ago.
So, with all that said, all thevery best.
(35:57):
Thanks again and uh, lookingforward to coming back on the
roundup sometime in uh, injanuary.
Speaker 1 (36:04):
Take care well, that's it.
We are at the end of anothershow and the end of another year
.
Yes, and what a year it was.
As we've heard in this show andour last one, it's been quite a
ride for the marketparticipants, for the market
infrastructures, uh, for themanagement companies, for the
(36:25):
consultants, for the dataexperts and the many, many
people who've helped totransition, uh, the derivatives
markets of europe uh into, uh, amere refit, and I think
everyone is glad it's happening.
And you know, looking back, itmay have been challenging, but
it's obviously been a hugesuccess and it's got everyone
fired up and ready for anotherexciting year of change.
(36:49):
And we'll be talking about thatnext year when we come back, uh,
with the final few episodes ofseason 10 and then, of course,
as we roll into season 11 of theshow.
Yes, season 11.
Over 110 episodes will havepassed by then, and we have been
through sftr and amir and we'vetalked about dora, we've talked
(37:10):
about all kinds of differentchallenges facing the market,
from esG, collateral right theway through to open new data
standards, online executables,you name it.
We've had it, thanks, of course, to Isla and Ikma and all the
people who've joined us on theshow, from many different market
participants, managementcompanies, regtech vendors and
(37:32):
everyone who's a part of thebroader six group and RegistryR
community, and I guess all thatremains, then, is for me to ask
you again to join us on ourlinkedin page that's linkedincom
slash company, slash register,hyphen tr, where you can network
with everyone who you've justheard in this show, plus, of
course, nick and john and paulaand thomas and all the other
(37:53):
members of the register crew andas well.
Uh, do make sure that you get abit of a break, if you can, over
the holiday season.
If you're going to becelebrating christmas, we hope
you have a happy one.
If you're not, then we hope youget a decent break.
And if you're in the office, asso many of you were last year,
with a mere refits deadlinerolling in, well, I hope the
(38:16):
sandwich vending machine has gotsomething festive in it for you
and, in the meantime, for me,andrew keith walker, and from
our producer, manuel morenogarcia.
Uh, everyone at the uh sixgroup and everyone here in the
virtual studio helps bring thisshow together and make it happen
.
Have a happy festive season, ahappy holiday, uh, and a very
(38:37):
happy new year, and we'll seeyou in January 2025.
Bye-bye.
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