SOLUTION BRIEF Data Management & Analytics Financial Services Industry 1

Regulatory Reporting for Financial Services Executive Summary The financial services industry is under constant pressure from financial regulation bodies globally to ensure the integrity of the global financial system. They are subject to requirement, restrictions, and guidelines by regulators that may be government or non-government organizations. Examples of regulators and regulatory policies can include the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) in the U.K., which oversee the implementation of European reporting requirements such as FINREP and COREP, the Basel Accord, and the Sarbanes-Oxley Act of 2002 in the United States. As part of these requirements the financial institutions are obliged to report periodically, whether it is daily, monthly, quarterly, or annually, to the various regulators. These Regulatory Reports may contain raw or summary data needed by the regulators to evaluate the safe and sound condition and operations of a bank or other financial institution or to determine compliance with any government act, or other law, rule, or regulation. The volume and variety of data required as input for reporting purposes is vast, and includes data about trades executed, reference and counterparty data, sourced from trading and market data systems. The analysis of that data and the speed with which it needs to be manipulated requires considerable and complex processing resources. Furthermore, the banks are obliged to ingest new data sources, and correlate them with existing data to provide even deeper levels of insight for the regulators. And if that were not enough, not only do the banks have to report periodically to the regulators, they can be subject to ad hoc reporting demands for stress and scenario testing. To support the regulatory framework, the regulators can set policies for firms’ stress testing requirements, set stress scenarios, and monitor the test results. Business Drivers All of these challenges can put enormous pressure on financial institutions, and consume considerable resources internally. It is therefore vital that they establish a sound application framework that will enable them to respond to regulators in an efficient, timely, and responsive manner. The volume and variety of data to be processed and analyzed, the complexity of the analytical processes, and the urgency of the reporting requirements all create technology challenges in the data center. The volume and variety of data required as input for reporting purposes is vast, and includes data about trades executed, reference and counterparty data, sourced from trading and market data systems. SOLUTION BRIEF Data Management & Analytics Financial Services Industry 2 Out of Solution Scope ESP (Event Stream Processing) New Trade Stream Market Data Stream Reference Data Stream Upstream Trading Systems HPC Grid Trade Repository (Tiered Storage) Trade Agile Regulatory Submission Platform Counterparty Reference Tables Legal Docs (XML) (In-Memory) Analytics/ Ingestion SAS Analytics Regulatory Store Due Process Document Archive Submission Gateway XBRL Dodd Frank/MiFID SWIFT etc Cancel Correct Amend Dodd Frank Uncleared Margin Other Out of Solution Scope Regulators R1 R2 R [n] Hadoop Figure 1. Regulatory reporting process With these challenges in mind, Intel has a long history of working with an ecosystem of software solution providers to develop best-of-breed solutions for the financial services industry. These challenges are not addressed by either hardware or software in isolation, but by the harmonious cooperation between all technology components, including CPU/processors, data storage (including solid-state drives), networking components, and of course the database management system software and business logic/application code. Intel invests considerable resources in working with software providers to assist them in optimizing their applications for Intel® technology. To quote