Endoxa launches Position Reporting Utility supported by Droit

Streamlining shareholder disclosure compliance via collaboration and technology

Global position reporting rules require market participants to report securities holdings to regulatory bodies, a process that is complex, time consuming and creates duplicative effort across the industry. The aim of the newly established Position Reporting Utility is to improve the quality of these disclosures and mitigate interpretation and implementation errors through machine-readable rule logic established through a consensus model.

Endoxa will evaluate and review complex shareholder disclosure obligations across key regulatory jurisdictions. Consensus views on interpretive aspects of the disclosure rules provided by the consortium will be combined with legal interpretation provided by Allen & Overy, alongside the standardised legal analysis contained in Rulefinder Shareholding Disclosure from aosphere LLP, to develop codified decision in logic in Droit’s Position Reporting product. The resulting models will assist users in fulfilling their reporting obligations effectively and in a consistent manner while also offering regulatory transparency and helping remove reporting uncertainty.

Droit was selected as the technology provider due to the capabilities of its patented Adept platform, as well as the company’s longstanding reputation for driving conversation and consensus around regulatory interpretation in the market. Droit’s Position Reporting is able to automate the decision-making process and delivers a traceable audit record of every position evaluated for both sell-side and buy-side institutions.

Droit's position reporting product and consortium partnership

To verify decisions, Droit’s Position Reporting product generates pathways linked to the original source text. This transparency into the logic provides enhanced clarity, increased operational efficiencies, and a repeatable, defendable process. Platform users also have the ability to raise queries regarding nuances in the logic implementation.

Officials from Droit said the formation of this unique consortium provides a revolutionary approach to regulatory compliance. They believe this partnership can be extended to many issues the industry is facing. With Endoxa, they have the opportunity to break through the complexity head-on and find clarity together on the most challenging regulatory obligations.

Goldman Sachs’ representatives stated that creating this consortium will enable them as to better 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.

Also commenting on this development, the team from BMP Paribas said Endoxa’s work ensures there is a market standard interpretation of the disclosure rules in all jurisdictions globally, which will give institutions certainty that they are meeting regulatory requirements in a way that is consistent across multiple entities. Regulators and legislators should benefit from increased confidence that rules are being consistently applied. This represents a step forward for the financial industry.