AxiomSL has launched a solution to help banks to comply with the new Smart Cube reporting requirements that will be implemented in Austria by the Oesterreichische Nationalbank (OeNB) from 30 June 2015.
The reporting and risk management software specialist said that the OeNB has developed the Smart Cube system to standardize and improve the quality of the data it receives from domestic banks and subsidiaries of foreign banks. The Smart Cubes cover various topics, including assets and liabilities, collateral and exposures.
Ultimately, the Smart Cube system is intended to reduce the burden on banks by standardising the data they must report for different purposes. However, migrating to the new system will require banks to make significant changes.
AxiomSL will host a breakfast briefing in Vienna on 14 January to explore the implications of the changes.
AxiomSL’s Smart Cube reporting solution includes:
- One platform model: The Smart Cube reporting solution is built on the same platform as AxiomSL’s other regulatory solutions, which cover requirements including Common Reporting (COREP) and Financial Reporting (FINREP), the Markets in Financial Instruments Directive II (MiFID II), the Dodd-Frank Act and others. This ‘one platform’ approach ensures consistency across reports submitted for different regulations. It also reduces cost and complexity because clients do not need to maintain separate systems to comply with different regulations.
- Transparency: Dashboards allow users to monitor the entire Smart Cube reporting process. The solution also enables users to drill down from their Smart Cubes to the algorithms and Basic Cubes that have been used, and also down to their master data.
- Updating feature: AxiomSL monitors changes to the OeNB’s requirements on an ongoing basis and updates its solution accordingly. Version controls allow users to track changes to the regulations and compare differences.
“With the OeNB’s Smart Cube reporting requirements just six months away, banks need to start thinking now about how they will address this major overhaul of regulatory reporting in Austria,” said Ralf Menegatti, product owner, AxiomSL.
“Many other reporting requirements are also due to be implemented in the coming months, as part of regulations such as MiFID II and FATCA. The multitude of requirements on the horizon means market participants must think holistically.”
The Smart Cube reporting requirements, to be phased in from 30 June 2015, will start with finacial instruments such as loans, deposits and securities. This will be followed by more complex instruments, such as derivatives as per the following schedule:
Wertpapier-Cube V1: 30 June 2015
Kredit-Cube V1: 30 September 2015
Einlagen & Sachkonten-Cube: 31 January 2016
EZB-PKW-Cube: 31 January 2016
However, a London summit on the industry’s introduction of the technology cautions that testing and acceptance are still at an early stage and firms should proceed with caution.
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