Nasdaq Wins Four A-Team Group Awards

RegTech Insight Award: Best Cloud-Based Solution for Regulatory Compliance

Nasdaq RegCloud® combines the AxiomSL ControllerView® data-management and regulatory reporting platform in a SaaS model with managed Regulatory Change Services. It empowers firms to efficiently manage data and reporting across diverse regulatory requirements while future-proofing against changes. Clients can manage reporting and business priorities without having to worry about the total cost of ownership of complex hardware and software infrastructures. Moreover, RegCloud ensures security, performance, and real-time infrastructure and application monitoring.

The solution’s scalable framework supports various geographies, architectures, and designs, enabling end-to-end automation of manual processes and reporting functions. This leads to faster implementation and significant advantages over on-premises or client-controlled cloud deployments.

Firms can automate data management processes, including sourcing, validation, enrichment, analysis, consolidation, reconciliation, and reporting to stakeholders. Advanced capabilities efficiently address big data needs, while multiple environments can be managed synchronously and dynamically scaled for high availability and performance, crucial for processing granular datasets and data-intensive calculations, like those for ESG solutions.

RegCloud leverages infrastructure-as-code (IaC) principles, automating management and enhancing security under the DevOps framework. It seamlessly integrates with upstream provider applications, such as Snowflake’s data warehouse-as-a-service and Secure File Transfer Protocol (SFTP).

Regulatory Change Services ensures firms can maximize regulatory solution investments, optimize resources, mitigate the risks of ad hoc approaches, and predict costs. Strategic technology investments and resource utilization enhance business agility and reduce operational risk. In addition, a dedicated team of subject matter experts assists with solution updates post-implementation.

Innovation Award: Most Innovative Data Orchestration for Regulatory Reporting

In the coming years, the implementation of Basel IV will drive banks, corporates, private investment fund lenders and borrowers as well as others to adopt reforms aimed at reducing risk and fortifying the banking sector. As part of this process, they will need to implement a Basel-compliant platform that can pull diverse risk datasets from silos across their organization and orchestrate them.

Nasdaq Calypso and AxiomSL offer integrated risk solutions for orchestrating risk data efficiently. Nasdaq Calypso provides unified market and credit risk infrastructure across all asset classes, supporting regulatory calculations, such as counterparty credit risk and market risk approaches. Nasdaq AxiomSL  addresses data governance and risk aggregation needs, facilitating analytics and reporting for global regulations.

Connectors extract risk analytics data from Calypso and map them to ControllerView's extensible data dictionaries for calculation and regulatory reporting. ControllerView, hosted in the cloud, seamlessly ingests native data from various sources, delivering analytic dashboards and transparent reporting.

Mapped risk analytics adhere to specific regulatory requirements, such as standardized approach to counterparty credit risk (SA-CCR) and Fundamental Review of the Trading Book standardized approach for market risk (FRTB SA-MR). Additionally, economic value of equity (EVE) and net interest income (NII) analytics align with interest rate risk in the banking book (IRRBB).

End-to-end data orchestration ensures consistency between financial institutions' risk data across front- and middle-office operations, facilitating disclosures to analysts and regulators.

RegTech Insight Award: Best Solution for FRTB

The regulatory landscape is evolving with new capital charges and Basel IV requirements, increasing demands on data management and computational power. Firms worldwide are facing stricter mandates under FRTB, necessitating enhanced risk and regulatory reporting solutions for compliance, cost optimization, and profitability.

Nasdaq Calypso and AxiomSL offer an integrated solution for addressing FRTB requirements, such as risk sensitivities, calculations, and reporting. Their capabilities include flexible data import, expected shortfall (ES)/expected tail loss (ETL) calculation, back testing, and simulation tools.

Integrated data flows into ControllerView for consolidated aggregation and regulatory reporting, supporting alignment with ISDA calculations and Basel IV requirements. ControllerView handles FRTB-required datasets transparently, with its extensible CapitalView data dictionary architecture and auditable regulatory capital calculations.

Running on Nasdaq CapCloud™ and RegCloud, the solution enables straight-through processing, compliance with Basel Committee on Banking Supervision (BCBS) 239 Principles, and leveraging of big data and fast technology without sacrificing transparency. It supports ensuring governance, quality, and auditability, facilitating credit model management, pricing alignment, and data lineage tracing.

“Thank you, A-Team, for recognizing that Nasdaq Calypso in combination with Nasdaq AxiomSL offers the marketplace the only integrated front-to-back-to-risk-to-regulatory-reporting ecosystem for FRTB compliance. Integrated data from Nasdaq Calypso capital markets solutions and imported/native transaction-level data streams can flow directly into the Nasdaq AxiomSL ControllerView® consolidated aggregation, calculation, and regulatory-reporting platform. SaaS enabled via Nasdaq CapCloud™ and Nasdaq RegCloud®, the FRTB solution offers powerful compliance, optimization, and operational risk-reduction value that has garnered traction among financial institutions, especially in Europe. This dynamic solution empowers firms to confidently prepare for FRTB regimes’ evolving requirements globally — front-to-back and end-to-end.”

Ed Probst, Senior Vice President, Regulatory Technology, Nasdaq Financial Technology

Insight Award: Best Regulatory Reporting Solution for ESG

Investors and stakeholders are increasingly concerned about environmental, social, and governance (ESG) risks impacting companies' sustainability and profits. Regulators have introduced frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD), Corporate Sustainability Reporting Directive (CSRD), and Non-Financial Reporting Directive (NFRD) to enhance transparency.

Supranational organizations like the EU and ASEAN, along with countries such as Colombia, China, Hong Kong, Singapore, and South Africa, have implemented green taxonomies—classification systems defining environmentally sustainable economic activities and assets.

Various risk assessments have emerged:

• Brazil's Central Bank introduced Documento de Riscos Social, Ambiental e Climático (DRSAC) to support its sustainability agenda based on the TCFD.
• The European Banking Authority (EBA) mandates Pillar III Disclosures for banks to report on capital and risk exposures.
• The International Sustainability Standards Board (ISSB) issued IFRS S1 and S2 to enhance disclosure credibility.
• The Partnership for Carbon Accounting Financials (PCAF) enables financial institutions to disclose greenhouse gas emissions.
• The EU's Sustainable Finance Disclosure Regulation (SFDR) requires financial market participants to disclose sustainability information.
• The U.S. Securities and Exchange Commission (SEC) adopted rules to standardize climate-related disclosures.

While these frameworks, taxonomies, and assessments align closely, differences exist, complicating compliance, especially for multinational financial institutions.

Nasdaq’s ESG data hub, powered by the Calypso and AxiomSL ControllerView platforms, helps solve this problem. Financial institutions can disclose their credit- and investment-related ESG risks and create regulatory reports efficiently because the data hub minimizes calculation and data duplication across various requirements. Importantly, it provides a comprehensive framework for testing alignment with qualitative and quantitative screening criteria.

Technology is key to efficient data orchestration

Orchestrating Basel risk data and complying with ESG frameworks and regulations globally is a major challenge financial institutions currently face. The ability to monitor, measure, mitigate, and manage risk in a complex environment as well as comply with myriad regulations is critical because it promotes market integrity and inspires investor confidence.

Nasdaq appreciates the recognition of its work in the A-Team Group Awards and reiterates its commitment to innovating, adapting, and investing in these and other technology solutions to help clients manage risk across their organizations.