Screening and Regulatory Data Solutions

The Commodity Futures Modernization Act of 2000 (CFMA) establishes a framework for the joint regulation by the Commodity Futures Trading Commission (CFTC) and Securities Exchange Commission (SEC) for the trading of security futures products.

Regulation SBSR is a key component of the security-based swap regulatory regime established by Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Regulation SBSR provides for the reporting of security-based swap information to registered SDRs and for public dissemination of transaction, volume, and pricing information.

The 8th November 2021 marks the first compliance date for Regulation SBSR, which governs regulatory reporting and public dissemination of security-based swap transactions.

Leveraging the largest globally available database of index data within financial markets, our solution identifies indices and custom baskets classified as narrow-based or broad-based, using the definitions established in these regulations.

Key benefits:

• Synchronous Evaluations – API’s accept a basket composition and provide an instantaneous broad narrow evaluation for the basket/ index
• Regulatory Reporting – Ensure you report to the correct authority
• Composition Data Look-through – Daily screening of the index universe to determine weighting and composition membership
• Multi-Asset – Including Equity and Debt indices (CDS and Non-CDS)
• Delivery – Flexible distribution via flat file, SOLA DDM or on-demand API

Download Broad and Narrow based determination factsheet

Download On-demand broad and narrow based determinations factsheet

MiFID II is focused on the orderly functioning of markets through transparency and transaction reporting. Requirements ask for transaction reporting on products which contain securities listed within Europe.

Our Index/ETF MiFID II scope determination tool enables clients to promptly and seamlessly categorize whether global transactions are MiFID II eligible.

Key benefits:

• Coverage – Checks are run and disseminated across our ETF and index data
• Accuracy – Determinations regularly updated to account for rebalances and corporate actions
• Transparency – In cases of recursive indices, the determination will expand to look within the secondary level
• Delivery – Flexible distribution via flat file, SOLA DDM or API

Download Global Index and ETF MiFID II Scope Determination factsheet

Section 871(m) regulations provide updated rules for determining whether certain payments under swaps or equity-linked instruments might be treated as US ‘dividend equivalent’ payments and, if paid to a non-US beneficial owner, would be subject to US withholding tax generally applicable to US source dividends.

Our compliance solution tracks equity derivatives which are in scope/ subject to Section 871(m) regulations and is used by financial institutions holding Qualified Derivatives Dealer (QDD) status and looking to identify withholding tax requirements, or those lacking QDD status and looking to screen the population of indices and ETFs in the marketplace.

In Collaboration with our Markit Tax Solutions team, we provide a full end to end service offering, identifying instruments in scope, calculating the delta requirements, DEA amounts & Withholding Tax as part of 871m.

Key benefits:

• Risk Reduction – Pre-screening of underlying products prevents compliance breaches and aids in the correct tax handling
• Coverage – Assessment provided across our ETF and index data
• Cost Effective – Simple centralised data production avoids lengthy technical implementation or data costs associated with self-assessment
• Delivery – Available via SOLA DDM, API, Eclipse or FTP service

Download Section 871(m) Eligibility factsheet

Under the SEC rule 6c-11, ETF issuers have a requirement to disclose bid-ask spreads publicly on their website. Our compliance solution calculates the median bid-ask spread, based on 10-second snaps of the NBBO, for 30 historical calendar days. Calculations are delivered directly via API feed, flat file, or automatically published online using embedded widgets.

Automated solution leveraging our industry leading data, enabling you to identify Equity and Fixed Income ETFs eligible as collateral daily based on your risk criteria.

With a broadened inventory of accepted securities and triparty agent connectivity to manage distribution, the lists provide greater ETF collateral transparency and control by calculating daily risk scores.

Key benefits:

• Multi-Asset – Covers multiple asset classes, all ETFs holding Equity and Fixed Income that are eligible for inclusion
• Custom Lists – Tailored to your organisation’s risk profile, mandates, and securities of interest
• Objective Methodology – Standardised filtering methodology that analyses the ETF universe, identifying funds that qualify against the defined criteria for collateral use
• Automation and Efficiency – Criteria are used to perform daily screening of the ETF universe, automatically identifying newly qualified ETFs and removing those which fall out of the prescribed rulesets
• Connectivity – Daily distribution of approved qualified ETFs to multiple triparty agents, connecting all stakeholders with a central user interface framework
• Transparency and Control – Daily disclosure of Overlap Scores with a process to either accept or reject qualified ETFs

Download ETF Collateral Lists factsheet

Identify cryptocurrency assets and indirect exposure through ETFs, ETNs and Indices using our Cryptocurrency Screening Solution.

There is rising concern across financial institutions over the increasing level of exposure towards cryptocurrencies and linked securities. This can take the form of direct exposure through core businesses such as crypto exchange, mining companies, currencies, etc. and indirect exposure through tracking securities like ETFs and ETNs and crypto-related businesses which holds or transacts in cryptocurrencies.

• The largest global database of ETF and index data available within financial markets, providing a comprehensive daily look through solution to identify ETFs and Indices to holding crypto-linked securities.
• Analysis to identify and classify cryptocurrency linked securities such as: Core business (Exchanges, mining companies, etc.), Related (Holding company, payment services, etc. e.g., Tesla), Currency (Bitcoin, Ethereum, etc.),
• Crypto future.
• Lists distributed on a daily flat file before market open.
• Relationship between a basket and its underlying root security is defined. A useful tool for cases where the connection is several levels deep.

Download Cryptocurrency Screening Solution Factsheet