Five major international banks have announced the formation of the Endoxa Consortium, to establish a position reporting utility (PRU).
The initiative, which includes HSBC, Goldman Sachs, Barclays, BNP Paribas, and an as-yet unnamed fifth bank, will be supported by technology provider Droit.
The PRU will be designed to improve the quality of disclosures and mitigate interpretation and implementation errors.
Endoxa will also evaluate and review shareholder disclosure obligations across key regulatory jurisdictions.
Consensus views on interpretive aspects of regulation will be compared with legal interpretations provided by UK-headquartered law firm Allen & Overy and the standardised legal analysis, contained in Rulefinder Shareholding Disclosure from aosphere LLP.
The resulting models will assist users to fulfil their reporting requirements while increasing regulatory transparency and reducing reporting uncertainty.
The consortium will utilise Droit’s Adept platform to provide users with a traceable audit record of every position evaluated for both sell-side and buy-side institutions.
Brock Arnason, CEO of Droit, says: “With Endoxa, we have the opportunity to break through the complexity head-on and find clarity on the most challenging regulatory obligations.”
Richard Hempsell, managing director and global head of core operations at Goldman Sachs, adds: “Creating this consortium will enable us as financial institutions to more effectively and efficiently navigate the regulatory complexity of the global position reporting rules while retaining each firm’s ownership of the underlying risks. The platform will drive unified standards and support transparent, consistent compliance across the industry.”
Kara Lemont, global head of financial markets compliance at BNP Paribas, comments: “Endoxa’s work ensures there is a market standard interpretation of the disclosure rules in all jurisdictions globally, which will give institutions certainty that we are meeting our regulatory requirements in a way that is consistent across multiple entities.”
