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Case study

The challenge

A significant uptick in new global mandates from regulatory bodies across the Americas, Europe and Asia-Pacific motivated our client, a European financial services firm, to create a scalable platform to support faster responses to regulatory requirements. The current platform used hard-coded rules that made changes difficult. Because Cognizant was familiar with the existing platform, we joined forces with the client to support the implementation of its next-generation compliance platform. To ensure the implementation moved forward efficiently, while giving the client’s SMEs the time they needed to focus on the new optimization, Cognizant ran the legacy compliance management platform, including front- and back-office operations. Joint teams with deep regulatory expertise then worked together to build the new platform. Cognizant’s priority was to own and operate the existing system and to deliver mutually agreed on business outcomes.

Our approach

Cognizant proposed a solution that included acquiring the Common Regulatory Reporting Engine (CRRE) platform from the client and initiating a three-year contract to provide end-to-end service for this platform. As the incumbent provider in the CRRE platform’s development and testing services, we had the expertise necessary to propose an outcome-based solution. The scope of the project included transitioning two applications—the CRRE platform and the Trade Reporting Platform—to Cognizant under a managed services contract with change-the-bank services transitioned first, followed by run-the-bank services. The financial services firm entrusted us with testing the new platform, an approach made easier by our familiarity with its development and implementation. We improved the operating model by supporting production issues and queries, along with existing QA and testing activities.

Automating the global regulations compliance process

Key to the implementation’s business outcomes is the trust placed in Cognizant to run the CRRE platform, which is a highly critical business function for the firm. The daily volume of transactions is high, at seven to eight million reports per day sent to regulators across the Americas, Europe and Asia-Pacific. The range of financial products supported includes collateral, commodity, credit, equity, FX, rates and valuations. And each trade requires compliance with different regulations. Implementing AI/ML bots using open-source natural-language understanding reduced dependency on SMEs. Optimizations made through Agile/DevOps process improvements increased annual story point deliveries. Looking ahead, plans for the CRRE include more AI use cases to automate the combing of data to ensure the firm meets regulatory compliance globally across all asset classes.

7–8M

reports handled per day by the new compliance platform

80%

reduction in dependency on SMEs

237

story point deliveries a month