Xoriant CDi Solution for control relationship and economic interdependence under SCCL

11 February 2019

Federal Reserve Board finalizes regulatory regime to establish Single Counterparty Credit Limits. Globally systematically important banks are required to be compliant by January 1, 2020, and all other firms are required to be compliant by July 1, 2020.

Single Counterparty credit limit has many schedules required to submitted to Federal Reserve Board as FR2590 and schedule A-1 and A-2 majorly focusses on economic interdependence and control relationships.

 SSCL offers a test that when its required to determine whether economic interdependence exists between two Counterparties, a Covered Company or Covered Foreign Entity it must assess whether the financial distress of one Counterparty would prevent the other Counterparty from full repayment of the other Counterparty liabilities and if the insolvency or default of first Counterparty will be correlated with the insolvency or default of other Counterparty.

To determine whether “control relationship” exists between two Counterparties, a Covered Company or Covered Foreign Entity it is a must to check if one Counterparty holds 25 percent or more of voting securities or controls the election of a majority of the directors, trustees, general partners or individuals exercising similar functions of the other Counterparty.

CDi Solution

Xoriant CDi has an evolved hierarchy or beneficial ownership data, for more than a decade Xoriant has been researching and maintaining hierarchy data. We have a database of more than 14 million entities with over 80+ various attributes that directly or indirectly focus on control relationships and economic interdependence a few major sections of SCCL.

Xoriant CDi has the capability to enrich with attributes like shareholding patterns, board of directors for various entities. We maintain a 10% shareholding and above that fulfills SCCL requirement as 25% and 15% depending upon major counterparty and others respectively. Xoriant CDi also caters to the requirements of control of board of directors as it maintains the list of board of directors with designations like Chair of the Board, Directors, CEOs, COOs, VPs, and Trustees etc. Xoriant CDi has a dedicated team that works on data enrichment and data cleansing activities.

CDi Solution Delivery

Xoriant CDi provides a key data elements based on the requirements of the clients. Figure below represents the service delivery of the attributes.

Simplified pricing

Xoriant CDi offers different pricing models, based on a set volume, price per record or a fixed price for handling the data operations.

Volume based

Our volume-based pricing refers to a fixed yearly cost based on number of securities/ instruments that need be consolidated at the group level.

Per record based

In record-based pricing we charge a fixed fee per record based on the expected volumes. Per record price depends and differs based on different match types. Below are the match types:

  • Linked securities
  • Unlinked securities
  • Ultimate parent enrichment & attributes

Fixed prices

Xoriant CDi can provide with a fixed price on the operations given some assumptions on the volumes.

Value proposition

  • Flexible means of data exchange (online portal, API & curated data feed)
  • 14M+ entity records
  • High data quality

To learn more please visit http://cdi.xoriant.com or email steven.levine@xoriant.com

 

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