The 2008 Global Financial Crisis exposed substantial shortfalls in the regulation of the financial industry. Effective regulation is underpinned by data that is sufficient in scope, complete, accurate and timely. Post 2008, it was recognised that the breadth and scale of data collection needed to be vastly extended, and, because of the potential for rapid contagion in the early stages of a crisis, it also needed to be collected, processed and analysed far more rapidly.
Thus since 2008, there has been a huge increase in the rate of regulatory change across the financial services industry. This includes Basel III, AnaCredit, BCBS 239, Solvency 2, Dodd Frank or IFRS 9, EMIR, MMSR, MiFIR, SFTR. One theme common to many of these new regulations is the need to support daily or even intra-day reporting. The net result is a massive increase in the volume and frequency of reported data.
It’s not just the banks that face infrastructure challenges in handling these new regulatory requirements, but also the regulators and central banks, who must receive, process and analyse the data. Traditional relational databases are simply unable to deliver the required performance on such huge volumes of complex data.
Whilst regulation policy has dramatically improved since 2008, the operational reality is still falling short. Cyoda’s robust, high performance, flexible, scalable infrastructure can help Central Banks and regulators to plug this gap. More specifically, Cyoda can:
- Quickly and efficiently handle the large amounts of very granular data in different data formats (XML, XBRL etc.)
- Combine disparate datasets for reporting, analytics and processing
- Ensure the right data is received from the reporters, and that it is validated
- Provide dependable real-time trend analyses on KPIs /KRIs, based on valid, consistent data
- Gain a real-time overview of developments in the financial industry