REGnosys donates Rune code to FINOS to streamline compliance

REGnosys, a regulatory technology firm, has successfully contributed the language underpinning its reporting solution, Rosetta, to the Fintech Open Source Foundation (FINOS), the financial services umbrella of the Linux Foundation. The language, formerly known as Rosetta DSL, has been renamed Rune and is now available under the FINOS open-source governance. This allows FINOS members to develop, test, and share regulatory logic in a system- and technology-agnostic manner.

According to the Bank of England, regulatory reporting costs UK banks between GBP £2 billion to GBP £4.5 billion annually. While there have been improvements in RegTech adoption in 2024, many firms and banks are still behind schedule, with 78% of central banks currently lacking a formal RegTech strategy.

Rune's contribution aims to harmonise the fragmented nature of regulatory reporting, enabling the FINOS community to create a standardised expression of reporting rules. This initiative reinforces REGnosys' mission to advance regulatory reporting through collaboration, aligning with FINOS' Open RegTech initiative.

Rune has been utilised for production implementations of regulatory reporting under the International Swaps and Derivatives Association's (ISDA) Digital Regulatory Reporting (DRR) programme. ISDA's DRR uses another FINOS project, the Common Domain Model (CDM), to express global trade reporting rules as open-access, machine-executable code. The CDM, an open-source data standard for financial products and trades, is also supported in Rune.

Several financial institutions have championed Rune-powered projects for their operational efficiency and resilience. In November 2022, BNP Paribas announced its successful implementation of ISDA's DRR for trade reporting under the US Commodity Futures Trading Commission (CFTC) Rewrite. Global financial institutions, including J.P. Morgan Chase and Standard Chartered, are also supporting its ongoing development. Furthermore, in April, DTCC and REGnosys announced their collaboration to support ISDA's DRR through REGnosys' Rosetta platform connected to DTCC's Global Trade Repository, enabling reliable testing of trade reporting submissions.

Leo Labeis, Founder and CEO at REGnosys, commented, "From the outset, our vision has been to create a regulatory reporting solution that is built for the industry and by the industry. In a year of sea change within global regulatory reporting, with six major jurisdictions updating their trade reporting rules, the contribution of Rune to FINOS reinforces our commitment to community-driven compliance through modern, open-source initiatives."

Thomas Louis, GM CDO and Head of Regulatory & Surveillance Technology Platform at BNP Paribas, stated, "BNP Paribas has been at the forefront of the development of CDM and its application to ISDA's DRR for several years and welcomes the step taken by REGnosys to open source a critical supporting component of these projects. Having a language to co-develop regulatory code between market participants allows us to build compliance assurance at industry level."

Eleanor Kelly, Global Head of Markets Regulatory Change and Control at J.P. Morgan Chase, remarked, "Ensuring we adhere to the highest standard of data quality and control in our regulatory reporting is of critical importance for J.P. Morgan Chase. Being able to express all of our data requirements best practice into code and through industry consensus is a very effective way to achieve operational excellence, and we recognise the benefits that open-source technology such as that contributed by REGnosys and FINOS offers to facilitate this."

Syed Ali, Managing Director of Repository & Derivatives Services at DTCC, said, "DTCC remains committed to helping the industry achieve complete, accurate, and timely derivatives trade regulatory reporting. By leveraging open-source, standardised, and machine-readable logic, with capabilities that evolve as regulatory requirements evolve, firms are better placed to achieve compliance. We are pleased to be working with REGnosys and FINOS as we collectively champion operational efficiency and data accuracy in the derivatives trade reporting space."

Scott O'Malia, Chief Executive of ISDA, added, "The ISDA DRR allows firms to implement new reporting requirements cost-effectively and accurately, reducing the risk of regulatory penalties for misreported data. We support all efforts to facilitate the adoption of the ISDA DRR and CDM, so welcome the contribution of Rune as open source on FINOS."

Jane Gavronsky, Chief Operating Officer at FINOS, expressed excitement over the development, stating, "We are excited to welcome Rune to the FINOS portfolio of open source and open standards projects. Regulatory reporting is one of the biggest challenges facing financial institutions today, and FINOS's Open RegTech initiative brings the industry together to mutualise the creation of innovative solutions in an area ripe for open source disruption. Based on Rune's success, we look forward to its continued potential to enable the industry goal of more efficient compliance."