Monitoring regulatory changes to stay one step ahead

Satya Pemmaraju, founder and chief executive officer at Droit Financial Technologies, discusses how the organisation’s Adept platform can offer institutions knowledge of complex global rules systems to enable auditability and traceability, as well as how the platform’s digitised daily monitoring of changes to new and existing regulation can allow its clients to be prepared for regulatory changes

What are the advantages for institutions adopting Droit’s Adept platform?

Satya Pemmaraju, Droit Financial Technologies: Droit provides enterprise infrastructure to global financial institutions
that are looking to facilitate compliant and optimal derivatives and securities trading across all asset classes, Group of 20-aligned regulatory regimes, global central counterparties and execution platforms. 

Financial institutions face an increasingly complex regulatory landscape. Transactional compliance requires knowledge, maintenance and automation of extremely complex global rules systems. Droit’s Adept platform provides for this, generating the full global cross-regulatory implications and obligations of trades in real time, with a visualisation framework that enables complete auditability and traceability through to fully digitised regulatory text.

What steps is Droit taking to ensure its clients understand how the latest regulatory regimes may affect their businesses?

Satya Pemmaraju: A core component of the Droit platform is daily monitoring of changes to existing and new regulation – which is digitised. We also monitor the rule books of associated market microstructure – this data goes hand in glove with the law and is an important part of compliance calculation. These sources of change are provided to our clients as structured rules or data that is readable by humans and can be easily understood and reviewed. We work with our clients so they understand our standard interpretation of new regulation, and the Adept visualisation framework ensures this is a very efficient process. As the Adept platform resides alongside – and is integrated into – our clients’ trading and regulatory post-trade infrastructure, we work with them to ensure they understand the associated new application programming interface data requirements.

How has demand for compliance products changed recently?

Satya Pemmaraju: Demand has increased year on year – Adept now supports 16 regulatory regimes and counts 14 global banks as clients – and we expect the second Markets in Financial Instruments Directive to be a further accelerator, given the range of financial institutions scoped in.

What challenges lie ahead for Droit?

Satya Pemmaraju: Droit is partnering with its clients on a range of exciting new initiatives to digitise other classes of rule book for the purposes of real-time complex decision-making with unprecedented levels of auditablity and traceability.

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