Qomply Announces

Expansion into US with CFTC Quality Assurance Solution

Press Release, 4 June 2024

Qomply, an award-winning, leader in Transaction Reporting Solutions, announced its expansion into the United States with a CFTC reporting solution.

Qomply's entry into the US market coincides with recent enforcement activity by the US CFTC regulator. The fines handed down sent a clear message to firms dealing in Over-the-Counter derivatives to either prioritise accurate reports or face severe penalties.

“It now has been 13 years since Dodd-Frank and well past time for swap dealers to ensure they are in full compliance with the CEA and CFTC regulations,” said CFTC Division of Enforcement Director Ian McGinley. “As significant reporting failures continue to persist, our resolutions will reflect the gravity of swap dealers’ continuing failures to prioritize compliance and seek to deter future failures. “

McGinley's comments follow the September 2023 CFTC's imposement of fines totalling $50 Million across three major financial investment firms for failures related to the accuracy and timeliness of transaction reports required by CFTC regulations. Under-reporting, under-reporting, mis-reporting, and reporting late were all noted as contributory factors to the punitive enforcement.

Headquartered in London, UK, Qomply has been helping clients comply with the complex transaction reporting rules since 2019. Managing Director at Qomply, Michelle Zak observes: “Qomply’s entry into the US is timely as CFTC transaction reporting faces increased scrutiny. Data quality is one part of accurate reports. Under-reporting transactions, incorrect static data, misrepresenting product classifications and reporting incorrect price notations are amongst the violations noted by the CFTC. These are all areas that would have been easily detected by Qomply.”

“Many firms compute the cost of transaction reporting as an operational cost that can be broken down into a price per transaction. However, enforcement action can dwarf the everyday costs of producing reports. Regulators have the authority to force a firm to undertake an external audit that can incur fees upwards of £1 million when incorporating internal resources as well as external subject matter experts.”

The CFTC notes: “In FY 2023, the CFTC’s Division of Enforcement (DOE) filed 96 enforcement actions charging fraud, manipulation, and other significant violations in diverse markets, including digital assets and swaps markets, resulting in over $4.3 billion in penalties, restitution and disgorgement.”

Qomply has received success in the UK and is highly-regarded for the comprehensiveness of their transaction reporting services. Many clients have experienced significant results, including over an 80% reduction in costs and more than a 65% reduction in time spent on manual processes. Qomply is well-positioned to replicate and expand upon this success in the US.

About Qomply

Qomply empowers financial firms of all sizes to meet their regulatory transaction reporting requirements (MiFID, EMIR, CFTC, SFTR, MAS and ASIC) with best-in-class cloud-based technology solutions that are easy to use at affordable price points.

Our award-winning ReportAssure platform, powered by our proprietary assurance engine, delivers one of the most comprehensive arsenals of accuracy checks in the industry, ensuring our customers’ transaction reports are as complete and accurate as possible.

By offering affordable, modular subscriptions, we enable financial firms of all sizes to benefit from high-quality, regulatory reporting technology, choosing from a menu to suit all appetites.

For more information, please contact Qomply, on +44 (0) 20 8242 4789 or info@qomply.co.uk

Follow Qomply on social media on Twitter (https://twitter.com/QomplyRegTools) and LinkedIn (https://www.linkedin.com/company/qomply/)

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