Financial contract data capture - thought you were done, well think again!

In early March the European Banking Authority (EBA) published a consultation paper outlining draft regulatory standards for the minimum set of data that institutions should hold on their contracts within the European Union. 

Rather than requiring a few scant details that can easily be covered off by any in-flight programmes to patch-up data, the draft demands a whole lot more.

Current collateral remediation and other audit point clean-ups that focus on small numbers of document types are unlikely to be enough.

While not enshrined in law just yet, it's pretty clear this requirement is not going away and what is even clearer is that those companies who embrace the regulatory changes as part of achieving resource efficiency will gain the advantage over those that adopt a follower stance.

Benefits for 'leader' organisations range from de-duplication of data capture effort through to more efficient and standardised negotiation in legal, all the way to multi-million dollar collateral optimisation gains and better pre-trade analytics data.​

To see the draft look at the EBA site.​

Below are some thoughts on those features that 'leader' organisations will seek.​

Next-generation contract data management platform – 10 must-have features:

1. Counterparty centric view, looking across all contracts

2. Ability to rapidly on-board new contract types and extend existing ones

3. Integration with your internal client reference data platforms

4. Compliant with external client reference data such as LEIs

5. An application programming interface to connect up to your key systems

6. A direct and accurate link between the data and the text in the contract

7. Pre-defined reports covering the key requirements

8. Access to the data from your preferred BI and Analytics platform

9. Entitlements model to comply with jurisdictional restrictions on data access

10. Workflow providing a controlled and transparent process