Deutsche Bank has recently chosen the Trade Discovery solution offered by the London Stock Exchange Group (LSEG). This decision highlights the importance of compliance tools needed to meet the requirements laid out in the Fundamental Review of the Trading Book (FRTB) regulation.
FRTB mandates that financial institutions utilize their own market risk models while requiring access to accurate and thorough data on various financial instruments across both regulated and over-the-counter (OTC) markets. The LSEG’s Trade Discovery solution is designed to address this need by aggregating critical data from multiple sources, covering a variety of market environments including regulated, transparent, and opaque OTC markets.
LSEG possesses broad market coverage for exchange-traded and OTC derivative instruments, collaborating with entities like LCH and Tradeweb. Additionally, the organization has formed strategic partnerships with other data providers such as Fenics Market Data and Parameta Solutions, further enhancing its capabilities.
This Trade Discovery service provides an extensive repository of data encompassing billions of data points related to rates, credit, foreign exchange, and equities across various jurisdictions. This robust data access plays a crucial role in enabling banks to fulfill the rigorous data requirements stipulated by the FRTB.
The offering has undergone independent audits to validate its compliance and accuracy, ensuring that the provided data meets the strict standards requisite for FRTB compliance. This level of scrutiny provides assurance of reliability for users, including Deutsche Bank and the wider market.
A spokesperson from LSEG expressed enthusiasm regarding this partnership, emphasizing the accuracy and regulatory compliance of the Trade Discovery solution as affirmed by the independent audit process. It was noted that the comprehensive data coverage and established alliances with key global market infrastructures would support the needs of institutions navigating the complex FRTB regulations.
Complementing this, a representative involved with the FRTB initiative at Deutsche Bank underscored the value of LSEG’s Trade Discovery solution in providing comprehensive and reliable data. This data is vital for ensuring that market risk models adhere to regulatory demands while simultaneously enabling the fixed income sector to maintain its competitive advantage in a rapidly evolving market landscape.
Overall, the selection of LSEG’s Trade Discovery solution marks a significant step towards enhancing compliance efforts and risk management capabilities, particularly in the context of increasingly stringent regulatory frameworks governing the financial industry.