London 19 May 2020 – Delta Capita, the international business & technology consulting and managed services firm, today announced that it has extended its collaboration with The Depository Trust & Clearing Corporation (DTCC), the premier market infrastructure for the global financial services industry, to help market participants meet their Securities Financing Transactions Regulation (SFTR) trade reporting requirements. Through this collaboration, clients of DTCC’s Global Trade Repository (GTR) service for SFTR will be able to directly leverage Delta Capita’s buy-side data test pack, streamlining the testing process for DTCC’s GTR users to promote readiness for the forthcoming mandate.

The Delta Capita industry standard test pack, developed with a consortium of banks and agent lenders, is now available for asset managers, hedge funds and other buy-side firms for their SFTR testing. Clients of DTCC’s GTR service who license the test pack will have access to securities financing transactions life-cycle event test scenarios, including the expected results, to help identify issues and accelerate testing ahead of SFTR go live.

The pack comes with an online traceability module – linking SFTR test cases to the regulatory and industry technical standards, European Securities and Markets Authority (ESMA) rules and industry best practice. Firms can also benchmark their testing progress within their peer group.

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London, 27 April 2020 – Delta Capita, the international business & technology consulting and managed services firm, today announces that it will collaborate with UnaVista, London Stock Exchange Group’s regulatory reporting platform, to help firms meet the requirements of SFTR. Through the collaboration UnaVista customers will be able to access Delta Capita’s SFTR data test pack.

As announced in 2019, Delta Capita has created a consortium of sell-side banks to establish a standardised SFTR industry test pack.  SFTR regulation mandates buy-side firms to report SFTR transactions from 12th October 2020, following the postponed go live of the regulation from July 2020.

The Delta Capita industry standard test pack gives firms a comprehensive model of SFTR scenarios, events, reports and validation rules. It’s fully traceable to the RTS / ITS, ESMA rules and best practice. So it’s immediately faster, lower cost and more robust compared with firms doing it for themselves.  The pack includes all the trade and reference data that firms need for testing – plus expected results, so firms can confidently diagnose issues that need fixing. Firms can also benchmark how their testing compares against their peer group.

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The banking industry operating model is broken and needs dramatic reinvention for banks to survive in the longer term.

The clear parallels

As we look at the banking industry operating model today, it looks similar to that of the airline industry in the late 1980s.  The entire business value chain proprietary owned and operated by the airlines themselves, including non-core functions, such as ticketing, luggage handling, ground services and catering etc. This model resulted in little to no recurring investment in the non-core functions that were considered low value, cost centres. In reality, these functions were instead subject to continuous cost challenge without investment. This approach did little for client experience, operational efficiency and risk management. Morale of the staff who had the thankless task of managing and maintaining service continuity in these functions was extremely low (sound familiar?). Further, this model distracted investment and management focus from delivering differentiation in the airline’s core proposition. The outcome – poor quality services, customer dissatisfaction and consistent failure to deliver on a strategic return on equity; and in some cases business failure.

Thankfully with the benefit of hindsight, we can also look to the airline industry for the solution – adoption of a supply chain model.  Integration into an eco-system of specialist providers/strategic business partners providing non-core services and functions. By developing standardised services on multi-tenanted platforms to multiple airlines, these specialist providers were able to achieve utility scale and the platform investment not possible for a single airline operator. In turn, this allowed the airlines to focus on differentiation of proposition. The outcome – improved cost income ratios, better quality support services and enhanced customer experiences, resulting in improved returns on equity.

However, despite these clear lessons, and banking industry executives agreement on the topic, industry body research and advice from leading strategic advisory firms over the years – the industry still remains lethargic and little action has been taken.

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London, 22 March 2020 – Delta Capita Group, a global consulting, solutions and managed services provider, has secured a $50m equity investment from Prytek Holdings and gained access to over $100m of capital for future acquisitions and funding for client transactions. The investment enables Delta Capita to further expand as one of Europe’s leading service providers and fintech technology hubs.

Prytek, the multinational corporation headquartered in Singapore, focuses on technology investments and operations-as-a-service companies, with a $300m diverse portfolio across fintech, edutech, artificial intelligence, cyber security and human resources. Following this transaction, Delta Capita will become the financial services arm of Prytek, bringing a range of innovation and technology to its clients.

Prytek’s Managing Partner, Andrey Yashunsky says, “Delta Capita has a unique combination of experience in Financial Services and technology innovation capability allowing it to offer outstanding managed services and solutions to its clients. Delta Capita will now benefit from access to the 35 innovative technology companies across the Prytek Group.”

Delta Capita’s CEO Joe Channer says, “Access to Prytek’s capital and growing portfolio, provides further leverage for Delta Capita and its growth as one of Europe’s largest fintech solutions and service providers.”

Delta Capita has recently been recognised by the Financial Times as one of the fastest growing businesses for 2020. This announcement follows the recent appointments of a number of high profile industry leaders including:

  • David Long (Board Member)
  • Philip Freeborn (Head of Pricing and Risk Services)
  • Gary McClure (Head of KYC Services) and
  • Gary Bullock (Head of Post Trade Services)

For further details please contact:

  • Prytek: Hedan Orenstein (hedan@ohpr.co.il)
  • Delta Capita: Lindsay Jones (lindsay.jones@deltacapita.com)

London, 9 September 2019 – Delta Capita, the international business and technology consulting and managed services firm, has today announced it is collaborating with The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, to help market participants meet their Securities Financing Transactions Regulation (SFTR) trade reporting obligations.

Delta Capita’s banking consortium is creating a standardised SFTR industry test pack. Under this new collaboration, Delta Capita will make the test pack available to DTCC to test its own SFTR matching and reporting service prior to launch. DTCC opened user-acceptance testing with industry vendors on August 30, 2019.

Clients of DTCC’s Global Trade Repository (GTR) service for SFTR – who independently license the consortium’s test pack – will benefit from knowing the service has already been tested, reducing their own testing effort and costs and ensuring readiness for trade reporting. Furthermore, DTCC will make its data transformation services available to Delta Capita’s banking consortium to assist with the creation of trade repository (TR)-ready ISO 20022 SFTR reports.

David Field, head of securities finance practice at Delta Capita, said: “Our test pack will provide full traceability to the European Commission’s regulatory technical standards (RTS), the European Securities and Markets Authority (ESMA)’s guidance, and best practices across repo, sell/buy-back and stock borrow/loan. It will provide users with the test data, test instructions and expected results to conduct their user acceptance testing (UAT), and to test with their counterparts, trading venues, service providers, central counterparties (CCPs), tri-party agents and trade repositories. Consortium members will be able to benchmark their testing run and pass rates to highlight any areas for review and remediation.”

Val Wotton, managing director, product development and strategy, repository & derivatives services (RDS) and collateral management at DTCC, said: “This new collaboration will provide a first-class testing experience for our clients. We are delighted to continue working with Delta Capita to ensure that our clients are well-prepared to meet their SFTR obligations.”

The consortium output can help any firm strengthen their SFTR testing in line with industry leaders. To find out more please see https://deltacapita.com/news/delta-capita-forms-sftr-testing-consortium and contact david.field@deltacapita.com.

The IBOR transition is both an opportunity and a threat to every financial institution. The opportunity is that a clean, well-managed IBOR transformation will enable a firm to take advantage of the possibilities that arise from changing one of the foundations of current financial markets. The threat is that a poorly managed, lagging transition will at best cost a firm market share and at worst incur significant regulatory attention and intervention.

The FCA as lead regulator is making it clear that Friday December 31, 2021 (YE 2021) is the hard deadline for the end of LIBOR. Industry bodies (ISDA etc.) and working groups are currently finalising the new fallback and trigger provisions for each product to create a transition path away from IBOR. The current proposals differ significantly across products, countries, and timeframes and the transition from unified IBOR term rates to multiple differing solutions is creating many issues, some of which have yet to be identified due to the uncertainty involved.

Want to learn more? Click here to receive the full, free white paper directly to your email inbox.

London, 4 July 2019 – Gary McClure has joined financial services professional services firm Delta Capita in its London office. The former HSBC executive will head Delta Capita’s KYC services business starting in September. 

“Gary’s industry experience in financial crime and KYC operations will provide the right leadership. We are very pleased that Gary is joining,” said Joe Channer, Delta Capita’s founder and chief executive.

McClure brings over 25 years of industry experience to the London-headquartered consultancy. Most recently, he was a Managing Director at HSBC, responsible for the global KYC operations function across investment, commercial and retail banking. Prior to that he headed up client onboarding at Barclays Capital and was an Executive Director in UBS’s global banking and markets operations business covering KYC and client data operations. McClure started his career in consulting at PwC, and later on also served Big Four rival KPMG prior to moving into banking.

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London, 2 July 2019 – Delta Capita, the international business & technology consulting and managed services firm, Pirum Systems and IHS Markit, announced today they will cooperate with an industry testing consortium to help firms meet the requirements of SFTR.

Delta Capita recently announced the creation of a consortium of banks to establish a standardised SFTR industry test pack. Under this new collaboration, Delta Capita will make the test pack available to IHS Markit and Pirum to support testing and provide feedback to the consortium.

Customers of the joint IHS Markit and Pirum SFTR solution who have independently licensed the consortium test pack will benefit from knowing the service has been reviewed by the SFTR solution providers, raising confidence in the service and potentially reducing their own testing effort and costs.

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In a recent article published in the Securities Lending Times SFTR 2019 Annual, Jonathan Adams (Managing Principal, Delta Capita) questions whether SFTR will ultimately deliver more efficiency and transparency to the securities finance market.

When the first Securities Financing Transactions Regulation regulatory technical standard (RTS) was released to market participants for consultation, it was met with dubious distain. Of the 153 fields, few could imagine how it would be possible to report more than 30 fields. Settlement matching had been on dates, security identifiers, counterparty information and economic terms.

It begs the question, how can a reporting regime of this complexity, fraught with the risk of matching failure, serve the regulator in determining the potential for systemic failure? Moreover, how can it benefit market participants?

Click here to read the full article.

London and Frederick, MD, 18 June 2019 HighGear, a leading no-code workflow automation platform provider, today announced its strategic partnership with Delta Capita, the fastest growing financial services consultancy in Europe, to provide fintech and workflow automation solutions to the European financial services sector.

By combining the unprecedented speed of HighGear’s no-code workflow automation platform with Delta Capita’s business consulting, technology and managed services expertise, customers in the financial services, banking and insurance industries will be able to improve efficiency, streamline operations and accelerate digital transformation.

 

 

 

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