Market and RegTech data reflect information collected and used in the financial regulatory system. This information is gathered through regulatory reporting, involves the application of emerging technology, and is supported by the use of open data standards. The fragmentation of the U.S. financial regulatory reporting system, reliance on document-based reports, and provision of information in static documents limits the ability of regulators and the American public to benefit from this information. In addition, the archaic reporting infrastructure imposes administrative burden and costs for regulatory entities. The cost-saving power of open data for financial reporting has already been proven internationally.
Proposals to modernize the financial regulatory reporting system to require standardized, machine-readable data will foster an environment for technology to improve the efficiency of the financial sector and regulatory reporting. RegTech applications can republish, analyze, and automate reporting processes providing deeper insight, cut costs, as well as fraud prevention. Government and industry must work together to standardize, share, and use high-quality regulatory data.
The Data Coalition advocates for policies to modernize the financial regulatory system’s reporting requirements, facilitating cooperation between regulators and regulated industries.