Reduce Risk with Centralized Entity Master for Fund Compliance

Background

Digital Alpha's Centralized Entity Master is a comprehensive solution designed to reduce risk and ensure regulatory compliance for investment firms. As group structures become increasingly complex, managing entity-to-entity relationships and compliance obligations can be a daunting task. The solution provides a centralized solution that automates monitoring of regulatory thresholds, disclosure requirements, and exchange limits for derivative contracts. It provides automated monitoring of:

• regulatory thresholds for sensitive industries and foreign ownership and
• exchange limits for CFTC and MiFID II on positions held in derivative contracts
• disclosure requirements for major shareholding, short selling and takeover panels

Some of the AWS services and tools used include Amazon S3, Amazon RDS, AWS Glue, Amazon Elasticsearch, Amazon SageMaker, AWS Lambda, and Amazon CloudFront.

Features

• Global coverage of market and derivatives regulation rules set out by exchanges and regulators, including MiFID II and CFTC, across a wide spread of asset classes.
• Self-service capabilities to create LEI taxonomy that can scale.
• Knowledge graph with confidence scores for legal entity hierarchy, sectors, jurisdiction, and securities issued.
• Maintain golden copy data quality rules.
• Data supply chain transparency.
• New data points by navigating linked data-sets connecting legal entities.
• NLP/ML capabilities.
• Multiple data access paths to front office applications.

Benefits

• Improved web scraping for existing or new data sources on regulated entities and entity relationships.
• Improved fuzzy matching of entities across external and internal sources.
• Driving regulatory checks across complex company aggregation structures for millions of underlying assets.
• Automates post-trade disclosure and limits monitoring.
• Model any asset type to accurately reflect the latest changes in regulation.
• Bring regulatory and market data together from multiple disparate sources to support rule checks and user enquiries.
• Managed Vendor Feed Service.

Common Use Cases

• Monitor disclosure requirements or holding limits across multiple countries.
• Assess impact by tracking global regulations.
• Build jurisdiction rules compliance process automation with rules engines, workflows, and alerts.
• Manage short selling regulations.

Deliverables

• Discovery Workshop
• Pilot
• Full Implementation