Wed. Jul 17th, 2019

Planet Compliance

Innovation & Regulation in Finance

The Business Spotlight on… Cappitech

10 min read

  1. What can you tell us about your company and your products & services?

Cappitech: The platform of choice for compliance managers

Offering the best regulatory reporting solution in the industry, Cappitech is revolutionising the way financial market participants meet their compliance obligations.

Through CapptivateTM, our cloud-based cross-regulation SaaS platform, banks, brokers, hedge funds, asset managers, insurance companies and corporates can both comply with regulatory reporting requirements and compete more effectively in an increasingly competitive marketplace.

Unique in the regulatory reporting arena, we harness innovative technology and a flexible architecture to fully automate the reporting process with a single, swift integration.  Our onboarding process is 35% fasterthan any of our peers and our internal operations are streamlined and automated, ensuring a lean cost base that allows us to pass the savings on to our customers.

A step ahead

CapptivateTMsupports EMIR, MiFID II, Best Execution, ASIC, FINMA, RTS 27/28, MAS and Canadian reporting with advanced readiness for SFTR and other regulations as they come to fruition.

The platform is robust yet nimble, able to quickly support new regulationsand incorporate changes to existing regulations well before they come into effect; thus allowing financial services firms to fulfil their reporting obligations at all times.

Through our intuitive CapptivateTMdashboard, customers can manage all their reporting requirements across multiple jurisdictions without the need to interface with the ARM, TR or Regulator directly. We even take care of all contracts and payments with the TRs and ARMs on behalf of customers.

Compliance officers can view all submitted reports alongside status; filter trades by date, status, regulation, message type and asset class; and see a detailed breakdown of the trades and their entire lifecycle.  They can also view statistical daily/monthly/yearly events in areas such as rejection rate, Best Executionand late reporting, in addition to peer group analysis.  For BestEx, they can view the quality of execution against their internal policy by asset class, symbol, liquidity provider, or client counterparty.

Technology that scales with customer needs

We have the technological power to manage, process and analyse large quantities of data.  Built using the agile methodology, our serverless solution scalesto increase the number of transactions and customers, and allows for processing spikes throughout the day.

Deriving intelligence to power business performance

By offering our customers state-of-the-art technology, we enable them to capitalise on the trading data required for compliance in order to gain unique insights into their business performance.  In this way, we empower compliance officers and other decision makers to make informed, data-driven business decisions and move from a tactical to a strategicapproachthat drives value directly back into the business.  Our Insightsproduct compares transaction data to third party market data to analyse whether execution was within a firm’s policy.  Users can also view the top reasons for rejections and see whether rejections were from internal validation or from the NCA.  Filters allow the user to see their data by regulation, rejection type or date; see reports that were submitted late; and benchmark themselves to their peers via graphical representation of their rejection rates vs the industry.

 

Turning compliance into a competitive advantage

 

Our Best Execution product allows users to view the quality of their execution against their policy and filter the data by trading partner or client – at-a-glance.  When we developed the product, we recognised that BestExis not only a regulatory issue but also a fund performance issue.  As a result, customers using our Best Execution tool not only avoid hefty fines but also reap financial benefits.  Below are just two examples showing how we can turn Best Execution into a competitive advantage:

 

  • Enhanced performance: The regulator requires firms to use external market data sources to benchmark their performance. However, some managers are using their own feed for benchmarking which is an incorrect practice. Asset managers that do not benchmark their brokers vs market data and peers can lose valuable basis points. They also lack the insights needed to require their brokers to improve their execution or switch brokers if need be.
  • Improved execution strategies: By evaluating execution strategies, users can improve performance and get the best possible outcome for clients. This could mean having to make incremental changes to their execution strategy, which could include using different execution venues, liquidity pools and execution times throughout the day. Using our BestEx product, financial organisations can easily monitor their execution capabilities.

Solutions & Products

Transaction & Regulatory Reporting Solution

  • EMIR Transaction Reporting (*Brexit Ready)
  • MiFID II Transaction/Trade Reporting (*Brexit Ready)
  • RTS 27/28 Reporting
  • ASIC Derivative Reporting
  • Canadian Trade Reporting
  • FinfraG Derivative Reporting
  • MAS Reporting
  • SFTR Reporting (*Pre-Live)
  • Reconciliations

Regulatory Intelligence & Peer Group Solution

  • Insights
  • Best Execution Monitoring
  • Regulatory Market Intelligence (RTS 27/28 analytics)

 

Asset Manager Solution

  • All reporting and Intelligence products designed especially for Asset Managers

Broker Solution

  • All reporting and Intelligence products designed for Brokers

Delegate Solution for large brokers

  • All products available with delegated reporting support such as dashboard per underlying LEI, Billing reports and more. Available as hosted by Cappitech or by the broker

Private Labelling

  • Transaction Reporting and Regulatory Intelligence Solutions as a white label platform

 

  1. How did you come up with the idea and what drives you?

Our mission is to bring state-of-the-art technology to the regulatory reporting arena while leveraging the trading data required for compliance in order to provide business critical intelligence. We enable compliance officers and other decision makers to make better informed, data-driven business decisions.  In this way, our customers can move from a tactical to a strategic, oversight approach that can drive value directly back into the business.

 

  1. What is it that makes your company different from others?

A number of factors differentiate Cappitech from its peers in the regulatory reporting arena:

Next-generation technology

The most technologically advanced platform in the market, our cross-jurisdiction compliance platform CapptivateTMfully automates the reporting process and provides a comprehensive view on a single, intuitive dashboard.  Offering next-generation analytics, Cappitech is revolutionising the way financial services firms meet their compliance obligations.

Entirely focused on the customer experience, rather than asking firms to deliver data to fit our spec, we adapt to their preferred format using customisable logic that is easily incorporated with customer-specific plugins.

Deep domain experts

Led by a team of experts with a 20+ year track record in building financial technology products, Cappitech is relied on by global banks, brokers, asset managers and corporates.  We work hand in hand with our customers to help them comply with complex and nuanced regulations, guiding them on best practice and supporting them with expert customer service.

We go beyond pure compliance to provide customers with a KPI management framework, peer group analysis and Best Execution monitoring tools.  We do this by leveraging the regulatory data we receive from customers and publicly available reports to offer business critical insights and intelligence that help companies improve their operations (Insights), trading execution quality (BestEx) and sales / investment decision-making (RTS27/28 analysis).

Our Peer group analysis tool is unique in the industry and helps companies evaluate the quality of their submissions, by benchmarking themselves to the industry average across trade rejections and late reporting, and then improve on performance.

One-stop-shop

A single platform for transaction reporting, Best Execution analysis and monitoring, and advanced analytics – all on a single intuitive GUI.  We cover every jurisdiction, asset class and instrument.

Future proof reporting

Since regulations are ever-changing, our platform dynamically incorporates changes with no effort required on the customer side.  We work closely with our users to ensure they are a step ahead and ready to implement any changes – including Brexit.

Enhanced security

We minimise the storage of personal data and offer secured NPD (personal data) and LEI masking.  Data is encrypted at rest in an AWS environment and in motion using HTTPS / SFTP.  We perform regular pen testing with our security auditors (KPMG).

Lower cost of ownership

Our internal operations are streamlined and automated so our cost base is lean, allowing us to pass savings on to our customers.  Numerous large institutions that were reporting directly to a Trade Repository have now become Cappitech customers, saving up to 70% on fees.

Quick onboarding

Our expert professional services team has successfully reduced the time from kick-off to reporting, enabling customers to go live following a 3-6 week integration period – significantly faster than any of our peers.

  1. Where are you based?

HQ is in Israel with customer service/sales in London, Dublin and Cyprus.

  1. When was the company launched?

The company was established in 2015.

  1. What traction have you achieved? Can you tell us about your biggest achievements so far?

We are revolutionising the way financial services firms meet – and profit from – their compliance obligations.  Led by a team of experts with a 20+ year track record in building financial technology products, Cappitech is relied on by around 100 regulated global banks, brokers, asset managers and corporates.  Established in 2015, the company has repeatably been recognised as one of the most innovative RegTech companies by FinTech Global and has won the 2019 RegTech Insight Awards for Best Regulatory Reporting Solution.  We report>1bn transactions per annum and account for around 5% of EMIR EU volumes.

  1. What advice could you give to other entrepreneurs and start-ups?

Get a product market fit as soon as possible to ensure you’re building something that clients need and are willing to pay for.

  1. What can you tell us about your team?

Our team is made up of industry insiders who have been building fintech solutions for 20+ years with a technology focus accompanied by deep domain expertise in financial regulation. Our current headcount of 30 is spread across Israel, London, Dublin and Cyprus.  Cappitech is backed by a leading venture capital firm, 83North, alongside industry veterans including Rony Grushka, co-founder of leading data and solutions provider Markit (now IHSMarkit).

Selected Management Team Bios:

Ronen Kertis, Founder and CEO has been managing software development projects for over 20 years, across several regions and in different markets. Prior to Cappitech, he was with ITG for 13 years, most recently as CEO of ITG Israel and prior to that, as CTO of the company’s EU branch in London.

Liron Zilber is Cappitech’s CTO and has been at the forefront of software development since 1999.  He was most recently team leader of software development at ITG Israel.

Udi Cohen is CFO of Cappitech.  Previously, he served as VP Finance for ITG Israel. He also served as Director of Finance for Siliquent Technologies (acquired by Broadcom) and iWeb Technologies (acquired by Global Media Online).

  1. What’s next for your company?
  • Covering upcoming regulations / financial market change including Brexit, SFTR
  • Continuing to provide business critical intelligence for key / upcoming regulations including RTS 28 and RTS 27 (via Cappitech Market Intelligence)
  • Rolling out our Private Labelling product to asset managers, brokers and banks for transaction reporting and regulatory intelligence solutions
  • Introducing bespoke solutions for Asset Managers, Brokers as well as a Delegate Solution for large brokers
  1. How do potential customers and investors get in touch with you?

regulation@cappitech.com

+44-(0) 808-189-1177

www.cappitech.com

 


“The Business Spotlight on…” is the section at PlanetCompliance that looks at the companies active in the sectors we cover, tells their stories and introduces the solutions to give them a platform to show what they’ve got and who they are. If you want to know more about how you can get featured in this section, contact us at launch@planetcompliance.comor on Twitter at @PlanetComplianc


 

 

 

 

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