FirstRand effectively manages and reports risk by getting quantitative solutions from Quants team of experts. They specialize in the field of Mathematics, Statistics, Economics, and Finance and the broader areas include credit, valuations, and market risk.
Reconciliation
2-way Reconciliation performed. Booking system V/s Trade confirmation. We perform this reconciliation to make sure what ever has been confirmed by the client is matching with the booking system. If any exceptions arise, we raise it to sales team to correct the fields/values.
London Entity (London Account) V/s South Africa Entity (GCT Account) As of now London doesn’t hold any risk on their accounts so to transfer all the risk sales team book an internal leg between London Vs GCT. Also, some trades are directly booked on GCT Book all trades should be reconciled before the EOD.
Regulatory Reporting
MIFID Regulation As we are part of London Entity all the OTC Trades between any counterparty between the boundary of London has to be reported to MIFID II Regulatory. So, for reporting the trades to MIFID Regulation we have appointed Vendor which is approved by Mifid Regulation who reports all the trades on behalf of us on T+1 basis.
EMIR Regulation: We do trade with other entities outside of London but with the boundaries of GB rest all the trades should be reported to EMIR. Any Exceptions arise, we have to solve and report again to the regulator in a specific time frame. If we miss any trade, there will be a penalty from Regulatory side.
Coupon Claims
On a Daily basis we need to check if any ISIN is due to coupon claim either to us or counterparty. These coupons are checked only on settled trades. Post that we will take further steps draft an email to counterpart for claiming coupon or paying.
On Going Projects Automation
Mifid II Kaizen Assurance Testing: We have hired a 3 rd Party vendor (Kaizen Testing) which does assurance testing on the trades which are being reported under Mifid Regulation. If any trade details missing/incorrect/blank were reported in past, we need to correct as per the Mifid II Specification guideline.
Emir REFIT Change: It’s a major change for all the Investment banks who are trading within the boundaries of Great Britain they have to abide by all the regulation changes and upgrade the reporting guideline/systems.
