A consortium of five major global banks—Barclays, BNP Paribas, Goldman Sachs, and HSBC—has launched a joint venture to develop a Position Reporting Utility aimed at enhancing the reporting of securities holdings to regulatory authorities.
Named Endoxa, this new utility seeks to improve the quality of regulatory disclosures and reduce errors in interpretation and implementation by utilizing machine-readable rule logic based on a consensus model.
Endoxa will address complex shareholder disclosure obligations across key regulatory jurisdictions, striving to achieve consensus on the interpretative aspects of disclosure rules. This initiative will be supported by legal insights from Allen & Overy and standardized legal analysis from Rulefinder Shareholding Disclosure provided by aosphere LLP.
Richard Hempsell, global head of core operations at Goldman Sachs, stated, “By forming this consortium, we can more effectively navigate the regulatory complexities of global Position Reporting rules, all while maintaining each firm’s ownership of the underlying risks. The platform will establish unified standards and promote transparent, consistent compliance throughout the industry.”
The consortium has selected Droit, a firm specializing in regulatory reporting, as its technology partner for this initiative. Established in 2012, Droit offers the patented Adept platform, which incorporates regulatory rules that reflect industry consensus. This platform is designed to automate decision-making processes and provides a traceable audit record for every evaluated position, benefiting both sell-side and buy-side institutions.
Brock Arnason, founder and CEO of Droit, commented on the collaboration: “The formation of this unique consortium, comprising some of the largest and most advanced global financial institutions, represents a groundbreaking approach to regulatory compliance. We believe this partnership can address a wide range of challenges facing the industry.”