A report by US software company MarkLogic says that ad hoc requests from regulators will pressure financial firms to implement the right data strategies going forward and 90% of the legislative initiatives will be applicable to both buy and sell-side firms. According to the report, there will be a greater impact on buy-side firms because they are less equipped in terms of technological resources. The report surveyed senior executives from top 12 financial firms in Europe and the US. MarkLogic Corporation, an American software business, develops an enterprise NoSQL database.

PJ Di Giammarino, CEO of JWG, a company which helps financial services firms gain control of regulatory change using technology, said: “Senior executives at large financial institutions are under substantial pressure to meet rapidly evolving regulatory requirements with project-based, manual approaches which create serious data headaches for compliance. Digital regulation offers an exciting alternative. In the future, firms will be able to update rulebooks just like using a smartphone today and the refreshed software will mitigate new risks.”

In the second half of 2018, JWG found more than 2,150 documents in the regulatory pipeline, which were mainly from Europe (33%) and North America (33%). The financial institutions are expected to integrate their data in a strategic manner to remain compliant. “Data lies at the heart of any organisation’s future strategy and is vital in how financial organisations respond to current and future regulatory challenges,” Giles Nelson, CTO of MarkLogic, said. “It is also fundamental to utilising new and innovative technologies such as AI, machine learning, natural language processing and distributed ledgers. To meet these requirements, there is little choice but for firms to take a strategic and digital approach across functions and avoid the building of new application and data silos to tactically cope with the latest deadline or new technology.”