Clarient, the industry-owned client data and documentation utility, and the FIA Technology Services, a wholly owned subsidiary of the Futures Industry Association, have partnered to introduce a solution intended to simplify the reporting process under new Commodity Futures Trading Commission Ownership and Control Reporting (OCR) requirements. The Clarient OCR Service aims to help both buy-side and sell-side firms prepare for the new CFTC rule which is expected to go into effect April 27, 2016.
The Clarient OCR Service, which is now live, provides users with a platform to collect, validate, store, and designate Futures Commission Merchants. Firms submit their data into the Clarient Entity Hub, which in turn provides OCR information that has been validated and reviewed directly to the FIA Tech platform.
FIA Tech then reports OCR information to the CFTC and relevant exchanges once the account has become “reportable” according to the current OCR rules. Clarient Entity Hub’s automated data validation controls can reduce the likelihood of data errors and help facilitate submission of mandatory OCR reporting information. Additionally, Clarient will incorporate the CFTC data refresh requirements once finalized.
This new service comes at a critical time as the CTFC seeks to enhance its large trader reporting program. The newly expanded OCR rule will significantly increase trader and account information that is reported to the CFTC. FCMs will be required to collect and report this information to be used when their clients’ trades or positions become reportable under CFTC rules. The Clarient OCR Service aims to simplify this reporting process by enabling clients of FCMs to provide validated OCR data in one place across all FCMs.
“Reporting entities are reliant on clients to provide data to help them meet their reporting obligations. The Clarient solution is a very good option for clients to use to manage their data,” said Mary Ann Burns, FIA Tech president.
Matthew Stauffer, CEO of Clarient added, “Working with our bank and asset manager partners, we continue to stay focused on developing a robust product roadmap to help clients better manage their entity data and meet the changing regulatory requirements. This partnership with FIA Tech represents Clarient’s commitment to working with the industry to develop solutions that facilitate compliance with regulatory mandates.”