Regulation Compliance
Bank & Broker Dealer Regulations
Asset Management Regulations
Insurance Regulations
Cross-Sector Regulations
Bank & Broker Dealer Regulations
Asset Management Regulations
Insurance Regulations
Cross-Sector Regulations
Bank & Broker Dealer Regulations
FRTB
Fundamental Review of the Trading Book (FRTB) establishes minimal capital requirements for market risk for a bank’s trading desks. FRTB is the standard set by the Basel Committee on Banking Supervision (BCBS) whose members represent 28 jurisdictions and over 90% of the world’s banking assets and its members are presently implementing these standards. Banks have the option to possibly lower their capital charges by taking the Internal Model Approach (IMA) over the Standard Approach (SA). Banks who take the IMA approach must demonstrate enough real price observations (RPOs) to pass the Risk Factor Eligibility Test (RFET) and perform desk level profit & loss attribution tests (PLAT) to backtest their IMA.
To support banks Internal Model Approach calculations, we provide Real Price observations reports that can help support the RFET as well as historical pricing data for Expected Shortfall regression models. We also provide FRTB Standard Approach (SA) analytics calculations.
SEC Rule 15c2-11
Updated rule requires broker-dealers to verify and publish issuer info before quoting OTC securities, aiming to protect investors and curb fraud. ICE’s 15c2-11 services provide over 80 fields of data per security, providing broker-dealers with information to help determine which OTC securities can be quoted and covers extensive fixed income securities and some securitized products.
Asset Management Regulations
SEC Rule 18f-4
Rule 18f-4 under the Investment Company Act of 1940 was adopted by the SEC to provide an updated, comprehensive framework on the use of derivatives by registered investment companies, business development companies (BDCs), ETFs, and closed-end funds.
SEC Form N-PORT
The ICE N-PORT service provides necessary reference data, risk metrics, taxonomy and classification data, liquidity disclosures and fair value levelling information to help clients complete certain questions on Items B and C of Form N-PORT.
SEC Rule 2a-5
SEC Rule 2a-5 provides a framework for the fair valuation of portfolio investments by registered funds and business development companies. ICE ‘s Rule 2a-5 portal was designed to assist clients who use ICE evaluations to value holdings in their portfolio to comply with various requirements of Rule 2a-5, including good faith determinations of fair value.
SEC Form 13F Data Service
ICE’s Form 13F data service provides information, including issuer description, latest Evaluated or exchange price and identifiers, for the securities included in the official list of Section 13(f) securities published by the SEC.
SEC Rule 13f-2
SEC Rule 13f-2 requires institutional investment managers to report short position data to the SEC on a monthly basis on Form SHO. ICE’s Rule 13f-2 Service provides essential data on portfolio securities to assist investment managers in determining whether Threshold A or B have been met and, completing a Form SHO filing, if necessary.
Fund Names Rules
Global Multiple regulatory jurisdictionsions now require fund holdings to reflect the terms in their names. ICE is leveraging its existing regulatory infrastructure to provide portfolio testing by running each holding through a client set of configured rules.
Hong Kong Complexity Indicator
ICE’s indicator helps platforms comply with SFC guidelines by identifying complex products in online and offline distribution. Built on high-quality reference data across 210+ markets, it supports product classification with transparency and scale.
SFDR
ICE’s SFDR PAI Service helps financial market participants meet disclosure requirements by providing updated input values for key all corporate and sovereign PAI indicators, linking securities to disclosing entities using ESG company data, controversies, and corporate hierarchies.
UK SIPPs
The FCA has implemented a capital adequacy framework for UK Self-Invested Personal Pensions (SIPPs) which includes higher capital requirements for those holding non-standard assets. ICE provides a service which systematically scans the ICE securities database to help determine a ‘standard’ or ‘non-standard’ categorization.
Insurance Regulations
PRIIPs
The Packaged Retail and Insurance-based investment Products (PRIIPs) Regulation is an EU and UK regulation that aims to enhance investor protection by improving transparency and comparability of retail investment products. ICE offers an Indicator service for persons advising or selling a PRIIP using system-driven logic applied across the ICE instrument database, to help identify products considered a PRIIP and which must therefore have a Key Information Document (KID) supplied as well as On demand access to the latest and historical KID documents from thousands of product manufacturers.
Solvency II
Solvency II is the regulatory framework adopted by the EU relating to insurance and reinsurance undertakings with the aim to ensure the adequate protection of policyholders and beneficiaries. The regulation established a three pillar structure, and ICE’s service helps clients meet obligations included in Pillar I and Pillar III.
ICE offers a comprehensive dataset which can help asset managers complete their reporting requirements for asset managers and insurers under Solvency II, in particular, those laid out in the TPT. The TPT remains widely used in the UK market since its Solvency II reforms. In addition to asset data requirements specific to Quantitative Reporting Templates (QRTs) under Pillar 3, ICE provides the extensive high-quality asset data required to support the Minimum Capital Requirement (MCR) and Solvency Capital Requirement (SCR) calculation process under Pillar 1 requirements. ICE’s Solvency II data solution also contains a number of key data attributes and service capabilities required to support Pillar 1 and Pillar 3 requirements.
Cross-Sector Regulations
Best Execution
A statistical distribution approach for measuring bond trade execution quality, our Best Execution Service utilizes ICE’s evaluated prices to help clients monitor trading activities and to help measure trading effectiveness across the growing number of venues and protocols more closely, which can assist users with meeting regulatory obligations.
Fixed income execution analysis is best observed over time and with many trades. While ICE’s Best Execution Service can help identify individual trade outliers, it also enables even deeper analysis by aggregating fixed income trades on a variety of levels and across broad asset coverage, including securities where trade details are not publicly disseminated.
Fair Value Leveling (FVL)
Fair Value Leveling Service is to satisfy fair value disclosure requirements prescribed under various accounting standards globally, including IFRS 13, FASB ASC-820, GASB 72, GENPRU 103, UK FRS 102 and SEC Rule 2a-5, entities are required to categorize fair value measurements (i.e. Level 1, Level 2 or Level 3) based on the inputs used to measure fair value. To help clients test and validate their fair value methodologies under SEC Rule 2a-5, ICE has enhanced its client-customizable rule engine to allow our Fair Value Leveling Service (FVLS) to provide more granularity for Level 2 inputs. The 2a-5 enhanced FVLS takes a data driven, risk-based approach to break Level 2 inputs into three Level 2 buckets: 2A-2C in addition to providing the Level 1 and Level 3 assignments.
Initial Margin (ISDA SIMM)
The ISDA Standard Initial Margin Model (ISDA SIMM™) is a common methodology for calculating initial margin (IM) for non-centrally cleared derivatives. The method aggregates and weights trade sensitivities on risk buckets.
We provide an IM pre and post trade calculation service based on the ISDA SIMM methodology including risk sensitivity calculations delivered in standard CRIF file format.
The IM module covers a wide range of derivative instruments and includes a static and dynamic back testing.
Liquidity Indicators Service
The ICE Liquidity Indicators™ service can help users comply with some of the latest regulatory requirements, including those from U.S. SEC, ESMA, Hong Kong SFC, Singapore MAS, Japan FSA, etc. The ICE Liquidity Indicators service provides an independent, near-term view of relative liquidity which ICE defines as “the ability to exit a position at or near the current value.” The service assists clients in measuring security-level and portfolio-level liquidity risk and can help enhance their investment decision-making process with liquidity as an input.
OSFI Rule B-15
Canada’s Office of the Superintendent of Financial Institutions (OSFI) introduced new climate risk management guidance (Rule B-15) that impacts over 300+ financial institutions (i.e. banks & insurance co.) reporting in Canada. The rule requires firms to prepare holistic climate risk management reports encompassing both transition and physical risk assessments and mitigation strategies, but also prescriptive Risk Return Disclosure templates to be populated to inform OSFI how climate risks are being managed in practice.
MiFID II
Aimed to improve the efficiency and integrity of European capital markets, Markets in Financial Instruments Directive (MiFID II) took effect on Jan. 3, 2018. While MiFID II applies directly to investment firms within the European Economic Area (EEA), the scope includes all trading or execution venues conducting business with the EEA. A UK equivalent regime has been established post-Brexit for trading conducted within the UK.
The investor protection framework set out in MiFID II aims to ensure that investment firms act in the best interest of their clients. The framework sets out more granular requirements that are captured under the European MiFID II Template (EMT). The EMT captures information about the costs and charges associated with a product, its target market, and whether the product is deemed leveraged by the manufacturer. ICE makes these elements of the EMT available in its services.
Sanctions
Identify and monitor sanctioned companies, groups and related securities with our quality data, up-to-date information regarding new entries and in-depth data analysis.
Compliance with sanctions programs can be more complete when the identification and monitoring of sanctioned companies (and their affiliates) is combined with linkages between entities and the securities issued by those entities.
Save time and resources by leveraging a single source to consolidate and normalize data and documentation from multiple national and supranational governing bodies.
Armed with high quality sanctions information, market participants are better able to assess and respond in the face of ever-changing criteria.
FATCA
Compliance with the U.S. Foreign Account Tax Compliance Act (FATCA) and its requirements has presented a challenge for the financial industry in terms of how to track and determine grandfathered status. Complicating this is the fact grandfathered status is not static. Significant changes to a grandfathered instrument may cause that instrument to lose grandfathered status under the Act and associated regulations.
The FATCA service provides foreign financial institutions and withholding agents with instrument level-detail to help determine withholding obligations. This service flags the FATCA status of instruments as: liable, grandfathered or exempt. Information is provided to identify instruments that lose grandfathered status, together with the date of the change in status.
