Citi has launched a new service to support SEC’s new liquidity risk management rules for the mutual fund industry in the US that calls for increased data, analytics, and reporting requirements.
The bank has teamed up with research-based indexes and analytics provider MSCI and automated data management solutions provider Confluence to comply with the new rules.
Citi head of North American custody and fund services Jay Martin said: “Together with MSCI and Confluence, we will create a set of user-friendly services that will help mutual fund managers navigate this complexity with transparency and control.”
MSCI will optimise the delivery of data and risk and liquidity analytics, facilitating their integration into Confluence’s Unity NXT Regulatory Reporting solution.
As required by the new SEC rules, the analytics will support calculation of market risk sensitivities and the classification of funds’ investments into liquidity buckets.
Confluence COO Todd Moyer said: “The depth of data that Citi Fund Services has already consolidated on the Confluence platform during our 20-year partnership will provide a strong basis for the sharing and reuse of data required by SEC Modernisation. Reusability of data is the cornerstone of regulatory reporting.
“With the Unity NXT Regulatory Reporting platform, Citi can leverage a single, validated regulatory data set that can be reused across the entire enterprise rather than having to exchange multiple data files to meet multiple filing obligations.”