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finos / open-regtech-sig

The FINOS Regulation Innovation Special Interest Group (SIG) is a community of people interested in creating open source solutions for regulatory and compliance issues in financial services.
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Potential Projects, use cases and tools #17

Open adds68 opened 3 years ago

adds68 commented 3 years ago

Feature Request

Description of Problem:

When reading the README I can not get an idea for the current status quo, I want to be able to see any current projects/ideas, so i can better gauge how to contribute and add value.

Potential Solutions:

Provide a list of current solutions or project that may help gauge the current status quo, possibly by using the awesome model https://github.com/sindresorhus/awesome

agitana commented 3 years ago

Hi @adds68 thank you for bringing this up.

Demo and presentation summaries

Please find demo summaries in this document and keep in mind that some summaries are still to be submitted by presenters.

Use cases and tools

To recap, below are the different focus areas that have been explored, together with the demos and use cases that have been identified:

Business area Tech focus Use Case Tools Discussed Status (last updated April 6th, 2021) Lead
Regulatory reporting Interoperability Tool-agnostic, standard Open Source regulatory messaging platform to achieve interoperability of technical tooling. Consider messaging standard between regulators and regulated entities as well as between regtechs. Morphir, FDC3
Regulatory Reporting Data models and governance Data lineage for FRTB, MiFID II, CCAR Legend, Rosetta discussion ongoing
Regulatory Reporting Addressing challenges around tax reporting
"Orchestrate": connected ecosystems and RegTech Appstore discussion ongoing, setting up conversation with vendors Ian Hollowbread (ING)
Machine readable and executable regulation Machine readable and executable regulation Open sourced, standardized and executable regulatory rule logic. Encoding regulatory rule logic in a human readable and machine executable format, specifically around ISDA's CDM. Consider work around EMIRr Refit. Rosetta, Morphir, Legend
AML Open source crypto tech sprint on anti-money laundering tech and law enforcement techniques for cryptocurrency with FinCEN. AIR setting up an accelerator within FINOS David Ehrich (AIR)
AML Federated AML knowledge base base that collates intelligence form multiple sources and has classified topologies by industry, business line and theme. Potential open source collaboration on library AML patterns and scenarios. Tookitaki (proprietary) De-prioritized until further notice
AML Use cases around US National Defense Authorization Act and/or FINCEN Beneficial Ownership Databases
Multiple Taxonomies & Ontologies Consistent, industry-wide ontology applied to a specific scope (i.e. Basel III, FRTB). Apiax presented a proprietary tool for this use case. Apiax (proprietary) James Nicholls (Braithwate) volunteered to lead this effort James Nicholls (Braithwate)
Financial Risk (Market & Credit) Backtesting Look at new ways to conduct back testing on portfolios focusing on the validity of the model and ensuring alignment between front office and back office.
SDLC Collaboration opportunities to address policies and regulations around the software development lifecycle (SDLC). (Presented at a DevOps Mutualization SIG) Amol Shukla (Morgan Stanley)

Next steps

Please engage with this issue to propose further use cases and tools suitable for open source collaboration. Some open questions for consideration include:

  1. Evaluating use of the CDM for the EMIR refit for reg due in 2022
  2. Finding a use case to do a PoC with Morphir, Legend, and/or Rosetta
  3. Identifying a subset of one of the regulations we've discussed to run a PoC. The PoC could be around interpreting the regulation, producing a standard taxonomy/data model, sharing a common reporting (transaction, risk) standard... Regulations that have been mentioned include FRTB, MiFID II, CCAR,
  4. Discussing the adoption of a messaging standard between regulators and regulated entities?
  5. Building a back testing tool that regulators could also use
  6. Any other extension or combination of the use cases and tools from the grid above
grill1002 commented 3 years ago

Happy to contribute to the ontologies / taxonomies efforts

TheHaymaker commented 1 year ago

ECNs and market data vendors hosted on the cloud force financial institutions to go through a lot of cloud and security compliance hoops. Same goes for Content Security Policies for both vendor and open-source software solutions. These policies naturally shift and change and are determined by respective institutions - however, what if there was an industry standard that was transparent, agreed upon, etc that vendors and maintainers could pursue and showcase?

Proposing /raising the idea of a baseline threshold or accreditation for vendors from software-side as well as data side. One - so those vendors/suppliers can highlight their compliance (e.g. FDC3 certification, for instance) and financial institutions can accept proof of that accreditation as meeting standards to expedite vendor onboarding or solution adoption.

Thinking would be a few separate paths: 1) For CSP, a) public-facing web applications and b) internal / desktop applications; 2) for data vendors on the cloud, baseline cloud security measures.