Regulatory Reporting - Financial Services Industry Lens

Regulatory Reporting

Every financial institution deals with volumes of information for regulatory reporting, and new regulations such as the European Union (EU) Markets in Financial Instruments Directive II (MiFID II) and U.S. Securities and Exchange Commission (SEC) Rule 613 (Consolidated Audit Trail) include reporting requirements. Static legacy infrastructure and inefficient reporting processes can make reporting costly and prevent customers from responding quickly to regulatory changes. Building a reporting data lake on AWS and leveraging the rich set of services can address many of the issues that complicate regulatory reporting (such as data residing in disconnected silos and distributed ETL processes). After customers integrate reporting data into a consistent dataset, they can use that data to gain additional insights through advanced analytics and machine learning.

Financial services data lake architectures supporting these use cases share the following characteristics:

  • They implement data quality, integrity, and lineage into the ingest and processing pipelines.

  • They require that data is encrypted at rest and in transit.

  • They mask or tokenize personally Identifiable Information (PII) data to meet regulatory requirements (e.g. EU General Data Protection Regulation).

  • They use Data Catalog with fine-grained access control and entitlements.

    Reference Architecture

Figure 2: Reference architecture for a Financial Services Industry Data lake