RegTech and SupTech: Disruptive Technology in Reporting, Regulation and Supervision

RegTech and SupTech: Disruptive Technology in Reporting, Regulation and Supervision

RegTech and SupTech: Disruptive Technology in Reporting, Regulation and Supervision

Course Chair: Kimmo Soramäki, Founder and CEO, Financial Network Analytics and founding Editor-in-Chief, Journal of Network Theory in Finance

 

Tuesday - 21 May 2019

Disruptive Innovation: The State of the Art

Implications and opportunities of the evolving regulatory and supervisory landscape

Patricia Jackson, Adviser on Risk Governance, Ernst and Young and former Head of the Financial Industry and Regulation Division, Bank of England

 

  • The state of the start of national and international regulatory and supervisory regimes
  • Key political and economic forces shaping the work of regulators and supervisors
  • Unavoidable risks, critical challenges and emerging opportunities
  • Discussion: How to supervise technological innovation?

RegTech and SupTech: technological foundations in 2019

Nahiomy Alvarez, Financial Markets Group, Federal Reserve Bank of Chicago

 

  • Evolution of financial, regulatory and supervisory technology
  • The impact of RegTech and SupTech on the financial services industry
  • Overview of key technologies in the areas of DLT, Big Data analytics, Machine Learning and Cloud Computing
  • Examples of applications in regulatory reporting and compliance risk management

Machine readability in regulation and supervision: where are we? and where are we going?

Panel with Nahiomy Alvarez, Financial Markets Group, Federal Reserve Bank of Chicago and Patricia Jackson, Adviser on Risk Governance, Ernst and Young and former Head of the Financial Industry and Regulation Division, Bank of England

 

  • The state of the art of machine-readable regulation
  • Opportunities and challenges for risk-based supervision, data quality assessment, and closing of the gap between regulatory intention and interpretation
  • The emerging role of cognitive compliance
  • Discussion: Does machine-executed regulation represent a realistic and desirable goal?

Wednesday - 22 May 2019

Adding Value: Combining Good Global Practice with Local Learnings

Using Big Data for nowcasting macro-economic indicators: the ECB-Google case study

Per Nymand-Andersen, Adviser, European Central Bank

 

  • Overview of emerging trends in regulatory Big Data
  • Opportunities and challenges of Big Data applications for financial stability and systemic risk analysis
  • Examples of good practice in combining Big Data from the internet, administrative and commercial sources
  • Case study: European Central Bank’s use of Google search data in autoregressive now-casting models

Making the most of Machine Learning, DLT and Cloud in risk-based reporting

John Yeo, Senior Associate, Financial Conduct Authority (invited)

 

  • Key features of effective risk-based supervision frameworks and strategies
  • The impact of APIs (Application Programming Interface) and software platforms on regulatory value chain
  • The role of Machine Learning, DLT and Cloud in market surveillance and risk prediction
  • Tips for effective management of sensitive issues in the areas of security standards and confidentiality

SupTech for effective supervision of systematically important financial institutions

Jermy Prenio, Senior Advisor, Financial Stability Institute, Bank for International Settlements

 

  • Overview of the D-SIB (domestically systemically important) and G-SIB (global systemically important) frameworks
  • Examples of RegTech and SupTech applications for D-SIB and G-SIB identification and continuous oversight
  • Implications for cooperation between the regulator and the regulated
  • Tips to overcome issues of cross-jurisdiction communication and coordination

 

Applying Network Analytics in FMI oversight

Neville Arjani, Principal Researcher, Payments Canada (invited)

 

  • The impact of disruptive technological innovation on the evolution of FMIs
  • Applications of advanced technology in the areas of Network Analytics and Agent Based Models for FMI oversight
  • Tips for collecting and effectively combining qualitative and quantitative statistics
  • Case study: Making the most of stress testing scenarios and simulations

RegTech for FinTech: how to regulate and supervise privately issued crypto assets?

Panel with Jermy Prenio, Senior Advisor, Financial Stability Institute, Bank for International Settlements and John Yeo, Senior Associate, Financial Conduct Authority (invited)

 

  • Overview of key risks (and opportunities) of privately issued-crypto assets
  • Tips for effectively managing financial stability implications of ‘Bitcoins’ on both local and systemic levels
  • Examples of cross-jurisdictional regulatory and supervisory cooperation and coordination
  • Discussion: Central bank issued digital currencies as an alternative to Bitcoin

 

 

Thursday - 23 May 2019

Lab Day: RegTech and SupTech in Action

Workshop: RegTech and SupTech for AML and anti-fraud

Kimmo Soramäki, Founder and CEO, Financial Network Analytics and founding Editor-in-Chief, Journal of Network Theory in Finance

 

  • Key financial crime risks of the digital era
  • Examples of Blockchain and Machine Learning applications in KYC and KYCC
  • The role of international and public-private cooperation and coordination
  • Hands-on exercise: automated vs. manual Fraud and AML investigation

Workshop: visualising systemic risk

Gareth Peters, Chair Professor for Statistics in Risk and Insurance Department of Actuarial Mathematics and Statistics, Heriot-Watt University, Edinburgh

 

  • Methods and practices for combining available technologies and digital platforms for visualising different types of systemic risk
  • Tips to effectively analyse complex financial data and filter signal from noise
  • Management of key operational and ethical risks and challenges
  • Hands-on exercise: Mapping of cross-holdings between financial institutions and identification of early warning indicators

Workshop: detection, investigation and prevention of DDOS attacks

Kimmo Soramäki and Gareth Peters, Chair Professor for Statistics in Risk and Insurance Department of Actuarial Mathematics and Statistics, Heriot-Watt University, Edinburgh

 

  • Key features of Distributed Denial of Services (DDoS) attacks
  • Implications for the work of central bankers, regulators and supervisors
  • Applications of advanced technology in identification on DDoS attacks
  • Hands-on exercise: detection of anomalies in cyber networks

Friday - 24 May 2019

Towards Sustainability: Governance and Growth

Sandboxes, incubators and accelerators: coordinating innovation with regulatory compliance

Kordelia Kafetz, Head of FinTech Hub, Bank of England

 

  • Strategies helping innovation comply with legal and regulatory requirements
  • Issues of funding and resourcing
  • Potential for cross-jurisdictional cooperation
  • Case study: Bank of England’s FinTech Accelerator – success stories and steps to be avoided

RegTech and SupTech governance: operational arrangements and institutional organisation

Jon Hasling Kyed, Deputy Director FinTech, Danish Financial Supervisory Authority (invited)

 

  • Overview of areas where central banks and regulators need technical agility
  • Examples of strategies, frameworks and indicators to assess suitability and needs of technological toolkit
  • Tips for selection and coordination of in-house solutions with the outsourced ones
  • Case study: Setting-up a FinTech/RegTech department

Delegate action points and course conclusion

Led by the chair Kimmo Soramäki

 

  • Summary of the training course
  • Discussion of the observed trends and case studies
  • Application of learning points in the delegates’ home organisations
  • Preparation of action points