Regulation compliance
The evolving regulatory environment challenges firms to expand data requirements and enhance risk management processes. We offer a range of regulatory-related services designed to help you with your compliance obligations and help improve operational efficiency.
Fundamental Review of the Trading Book (FRTB)
Fundamental Review of the Trading Book (FRTB) establishes minimal capital requirements for market risk for a bank’s trading desks. FRTB is the standard set by the Basel Committee on Banking Supervision (BCBS) whose members represent 28 jurisdictions and over 90% percent of the world’s banking assets and its members are presently implementing these standards. Banks have the option to possibly lower their capital charges by taking the Internal Model Approach (IMA) over the Standard Approach (SA). Banks who take the IMA approach must demonstrate enough real price observations (RPOs) to pass the Risk Factor Eligibility Test (RFET) and perform desk level profit & loss attribution tests (PLAT) to backtest their IMA.
To support banks Internal Model Approach calculations, we provide Real Price observations reports that can help support the RFET as well historical pricing data for Expected Shortfall regression models. We also provide FRTB Standard Approach (SA) analytics calculations.
SEC Use of Derivatives Rule
Rule 18f-4 under the Investment Company Act of 1940 was adopted by the SEC to provide an updated, comprehensive framework on the use of derivatives by registered investment companies, business development companies (BDCs), ETFs, and closed-end funds. UITs and money-market funds are exempt. The rule requires funds to report on additional risk created by their derivatives usage. ICE Portfolio Analytics has a Rule 18f-4 module to help funds calculate absolute VaR, relative VaR, conduct stress testing and the Limited Derivatives User test as required under the rule. The service leverages workflow already in place for ICE N-PORT service and ICE Liquidity Indicators™ clients.
Sustainable Finance Disclosure Regulation (SFDR)
SFDR introduces various disclosure-related requirements for financial market participants and financial advisors at entity, service and product level. The aim of the regulation is to provide more standardization and transparency on sustainability products within the financial markets, preventing greenwashing and ensuring comparability.
Fair Value Leveling Service
To satisfy fair value disclosure requirements prescribed under various accounting standards globally, including IFRS 13, FASB ASC-820, GASB 72, GENPRU 103, UK FRS 102 and SEC Rule 2a-5, entities are required to categorize fair value measurements (i.e. Level 1, Level 2 or Level 3) based on the inputs used to measure fair value. To help clients test and validate their fair value methodologies under SEC Rule 2a-5, ICE has enhanced its client-customizable rule engine to allow our Fair Value Leveling Service (FVLS) to provide more granularity for Level 2 inputs. The 2a-5 enhanced FVLS takes a data driven, risk-based approach to break Level 2 inputs into three Level 2 buckets: 2A-2C in addition to providing the Level 1 and Level 3 assignments.
Initial Margin
The ISDA Standard Initial Margin Model (ISDA SIMM™) is a common methodology for calculating initial margin (IM) for non-centrally cleared derivatives. The method aggregates and weights trade sensitivities on risk buckets.
We provide an IM pre and post trade calculation service based on the ISDA SIMM methodology including risk sensitivity calculations delivered in standard CRIF file format.
The IM module covers a wide range of derivative instruments and includes a static and dynamic back testing.
Liquidity Risk Management
The ICE Liquidity Indicators™ service can help users comply with some of the latest regulatory requirements, including those from U.S. SEC, ESMA, Hong Kong SFC, Singapore MAS, Japan FSA, etc. The ICE Liquidity Indicators service provides an independent, near-term view of relative liquidity which ICE defines as “the ability to exit a position at or near the current value.” The service assists clients in measuring security-level and portfolio-level liquidity risk and can help enhance their investment decision-making process with liquidity as an input.
FATCA Data Solutions
Compliance with the U.S. Foreign Account Tax Compliance Act (FATCA) and its requirements has presented a challenge for the financial industry in terms of how to track and determine grandfathered status. Complicating this is the fact grandfathered status is not static. Significant changes to a grandfathered instrument may cause that instrument to lose grandfathered status under the Act and associated regulations.
The FATCA service provides foreign financial institutions and withholding agents with instrument level-detail to help determine withholding obligations. This service flags the FATCA status of instruments as: liable, grandfathered or exempt. Information is provided to identify instruments that lose grandfathered status, together with the date of the change in status
SEC Report Modernization
The SEC rule addressing Investment Company Reporting Modernization added extensive new reporting requirements for the funds industry with the introduction of Form N-CEN and Form N-PORT, which replaced Forms N-SAR and Form N-Q.
The ICE N-PORT service provides reference data, risk metrics, taxonomy and classification data, liquidity buckets, and fair value levelling information for submitted portfolio holdings to help clients complete certain questions on Items B and C of Form N-PORT.
Solvency II: Data to Support Pillar I and Pillar III Requirements
Solvency II is the regulatory framework adopted by the EU relating to insurance and reinsurance undertakings with the aim to ensure the adequate protection of policyholders and beneficiaries. The regulation established a three pillar structure, and ICE’s service helps clients meet obligations included in Pillar I and Pillar III.
We provide high quality reference data and collect, edit, maintain and deliver pricing and pricing-related data from markets and exchanges around the globe. The combination of this high-quality reference and pricing data, coupled with advanced analytics, can help your firm with its Solvency II compliance obligations.
MiFID II
Aimed to improve the efficiency and integrity of European capital markets, Markets in Financial Instruments Directive (MiFID II) took effect on Jan. 3, 2018. While MiFID II applies directly to investment firms within the European Economic Area (EEA), the scope includes all trading or execution venues conducting business with the EEA.
The investor protection framework set out in MiFID II aims to ensure that investment firms act in the best interest of their clients. The framework sets out more granular requirements that are captured under the European MiFID II Template (EMT). The EMT captures information about the costs and charges associated with a product, its target market, and whether the product is deemed leveraged by the manufacturer. ICE makes these elements of the EMT available in its services.
Regulatory Comment Letters
ICE Data Services submits comment letters to U.S. and international regulators on proposed rules impacting the industry. Browse our most recent letters using the links below.
Financial Industry Regulatory Authority (FINRA)
TRACE for CMOs Response to Comments
Financial Accounting Standards Board (FASB)
Regulatory Insights
We understand you need to know not only what regulations are being implemented, but why and how they will impact the industry. Our education-focused portal looks at even the most complex regulations facing the financial services industry. Explore posts, visuals, webinars and videos about key regulations, and gain information and perspective to help you make more educated business decisions.