CHICAGO--()--Insignis announces the release of its automated Dodd-Frank MSP/MSBSP testing and reporting solution for plan, foundation, and endowment swap owners. While many owners have been focusing on the areas of Dodd-Frank which deal with swap clearing, there are additional aspects of Dodd-Frank with nearer-term compliance deadlines. Effective October 12, 2012, for CFTC-regulated swaps, and February 12, 2013, for SEC-regulated swaps, owners will be required to perform complex ongoing calculations to determine if they are a Major Swap Participant (“MSP”), or Major Security-Based Swap Participant (“MSBSP”). MSPs and MSBSPs will be subject to significant capital, recordkeeping, and compliance obligations.
“Insignis is already capturing the required data on behalf of existing clients, so our Dodd-Frank solution merely expands upon the data capture services we have traditionally performed.”
Insignis CEO, Hal Sullivan, notes: “While the vast majority of swap owners will not be designated as MSPs or MSBSPs, all swap owners will still have to test the daily positions, exposure amounts, and ISDA terms to prove they have not exceeded specified thresholds. Even if reporting exemptions apply, swap owners must still perform a number of complex computations.” Sullivan continues, “The type of information – swap data, collateral data, and collateral agreements – that must be captured daily in order to perform the mandated tests, and the breadth of data sources can make compliance an enormous burden for swap owners, particularly for large defined benefit plans, foundations, and endowments.”
“We have been collecting complex derivatives data, including swaps, for many years,” states Insignis’ SVP Key Account Management, Suzanne Streitz. According to Streitz, compliance with the MSP/MSBSP requirements involves a multitude of data points, including: identification of regulator, classification of asset rollup group, identification of forward exposure multipliers, ISDA (International Swaps and Derivatives Association) and CSA (Credit Support Annex) terms, as well as notional amounts, collateral amounts, and mark-to-market values; “Insignis is already capturing the required data on behalf of existing clients, so our Dodd-Frank solution merely expands upon the data capture services we have traditionally performed.”
Insignis Inc., a leader in investment portfolio data services and data management since 1985, collects data from multiple and disparate providers, including investment managers, custodians, broker/dealers, collateral agents, and institutional investment entities in support of its many service areas. The processes are secure, fully automated and run in Insignis’ SSAE 16 certified private cloud facility.
For more information about this topic, or to schedule an interview with Harold Sullivan, please visit www.insignis.com.