Successful pursuit of “bank-grade” regulatory compliance

Capco delivers large-scale transformation of a global energy company to enable future-proof regulatory response

Challenge Overview

A global energy company faced massive, vague and imminent regulatory legislation. It demanded a whole new level of transparency, where previously only relatively light federal oversight existed. The company called on Capco to deliver a work program that would ensure compliance, minimize risks and costs and maximize value.


Situation Detail

Our client, a large integrated oil and gas company with a heavy energy trading presence, had to transition to a heavily regulated designation. The associated onerous compliance obligations had been historically limited to banks. This sophisticated company commanded a wealth of experience and resources to apply to the challenge, but they nevertheless saw the benefits of partnering with Capco. They needed seasoned support to help guide them through entirely new layers of regulatory complexity. This required significant effort in to plan, design and execute a compliance solution.


Capco’s Value Delivery Focus

Capco’s efforts concentrated on bringing value to the commodity trading departments in the areas of:

  • Regulatory Compliance - We provided all internal and third-party regulatory operating, reporting and monitoring solutions, while consolidating existing legacy regulatory solutions.
  • Front Office - We provided the analytical tools and processes required to manage positions in real time, to avoid exchange and potential federal limits.
  • Mid-office Risk - We provided domain and technical expertise to move the existing mid-office risk market view to align with federal regulators.
  • Back Office IT - We provided the framework, tools and detailed structure for a new regulatory support group.
  • Corporate - We provided an experienced team to support the creation of a new trading entity to isolate regulatory impacts.

Detailed Actions

Capco delivered results by configuring and applying the following services:

Program and Project Management
  • Multiyear PMO for a diverse scope of work, from advocacy to solution maintenance
  • Experienced and qualified managers with deep domain expertise to ensure fit-for-purpose solutions delivery
Advocacy Support
  • Domain, technical and regulatory expertise brought to bear quickly to support early advocacy efforts, through proposed rule operational interpretation and impact analysis
Program Strategy
  • Program execution road maps to ensure efficient execution through a period of constant regulatory change
  • Architectural road maps to ensure addressing of solutions and deployment of services in the most appropriate ways, to minimize costs and risks and maximize value
  • Multiphase process and technology as-is/to-be analysis to ensure readiness for staggered compliance times
Technology Consulting
  • Where pre-existing industry solutions were unavailable or inadequate, Capco provided solutions development expertise to deliver real-time digital solutions
Integration Services
  • Modification of numerous legacy systems to support additional regulatory requirements
  • Integration of systems in real time and batch to support reporting and monitoring requirements
Global Information Management Solutions
  • Data Warehousing – We delivered a global warehouse providing a centralized view of positions and trading activity, a first for a global energy company operating varied ventures in diverse geographies
  • Analytics – Tailored and optimized solutions to support monitoring and investigation of positions and trading activities
  • Reporting Solutions – Creation and tailoring of internal and required regulatory reports

Resolution

Capco’s response delivered resounding success. The client now benefits from a robust and trusted solutions suite. This is designed both to meet current U.S. regulatory needs and to accommodate broadening global regulatory requirements in the years ahead.