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What is RegTech

‘What is RegTech?’

That is the question that many people ask when they hear that AQMetrics is a RegTech company. So we’ve decided to share what RegTech means at AQMetrics.

RegTech is technology that helps people comply with their regulatory obligations. AQMetrics RegTech is a utility that uses a range of legal, technical and business skills to create well designed software based on algorithms, data analytics and machine learning.

Why is AQMetrics a RegTech company rather than a boutique consultancy firm?

Given the deep financial services software background of the AQMetrics management team and with over 100 years between them in the regulatory risk and compliance trenches at Tier 1 banks, it is not surprising that people often ask why AQMetrics is not a consultancy firm.

For us it is all about creating exceptional customer experiences whilst sharing total costs. After a slew of global financial services regulations, it is no surprise that in recent years compliance costs have increased significantly for firms. As a result, firms are stretched to monitor compliance, to understand emerging regulations and to interpret more and more data. As all firms are faced with the same regulatory challenges AQMetrics decided that it was time to change the status-quo. As costly lawyers and specialist consultants traditionally charged by the hour to provide each firm with effectively the same solution, AQMetrics takes a different approach. Taking requirements from a multitude of customers AQMetrics provides one single best in class utility to all at a shared cost.

Why is Artificial Intelligence part of AQMetrics RegTech Strategy?

AQMetrics utility analyses large volumes of data through real-time surveillance and predictive modelling to detect suspicious activity and potential breaches of financial services laws. This coupled with machine learning means that AQMetrics compliance algorithms become more powerful over time so that our customers don’t have to rely on pre-programmed indicators of non-compliant behavior. AQMetrics algorithms use statistical analysis to self-adjust, picking out the truest predictors of risk. The truest predictors of risk are not always the most obvious ones.

Why a collaborative ecosystem is key to the success of RegTech?

AQMetrics automated workflow has built automated controls into operations across our customer base, so that processes or transactions that could result in a breach of certain regulations or policies are effectively controlled and reported. This is only possible through collaboration and integration with partners in the ecosystem. One example is AQMetrics pre-trade compliance rules engine that determines whether a trade can be entered for execution. For pre-trade compliance AQMetrics real-time access to Bloomberg data ensures that prices are always up to date in a portfolio on the AQMetrics platform. Marrying real-time market data with a library of rules means that if an order is deemed compliant, AQMetrics can automatically submits the trade for execution. If the transaction is rejected, then AQMetrics automatically terminates the order until an end user takes appropriate action. Another good example is AQMetrics EMIR reporting partnership with the DTCC. Through real-time APIs derivative contracts are seamlessly reported from AQMetrics to the DTCC for EMIR reporting.

RegTech can do so much more than save on costs

In conclusion, at AQMetrics we don’t view RegTech as simply a means to automating compliance processes currently completed by staff manually. AQMetrics sees RegTech as an enabler of a utility that provides a friction-less and enjoyable customer experience from beginning to end.