A New Jersey-based tech company helping banks and hedge funds handle new rigorous derivatives reporting requirements has received legal approval for its regulatory ‘rules engine’.
Kinetix Trading, headquartered in Princeton, says authorities have rubber stamped its system designed to ease compliance efforts with European clearing deadlines coming into force in June.
Under EMIR, European derivative transactions will be centrally cleared reported to trade repositories where then can then be accessed by regulators.
The idea is to give market supervisors a clear overview of trading in over-the-counter (OTC) swaps, the non-cleared derivatives products at the centre of the 2008 financial crisis.
Kinetix says its ‘rules engine’ provides firms with a simplified route to address multiple regulations, offering a central hub for managing and routing data.
The technology can operate in all derivative reform jurisdictions including Dodd-Frank in the US and EMIR.
Paul Puskuldjian, chief operating officer of Kinetix, reckons the firm’s compliance solution is “head-and-shoulders ahead” of other derivatives trade validation efforts.”
He joined the firm in February from Citi, where he was global head of capital markets, middle office.
“In today’s environment with narrowing spreads and more regulation, firms large and small must be smart about the way that they deploy and use technology,” Puskuldjian said at the time of his appointment.
“Investing prudently in technology infrastructure will reduce headcount and redundant system costs over the long run and offer clients’ an improved post-trade experience.”