Regulatory Tools

Deriveum will provide considerable upgrade to the regulatory tools available to authorities in the EU and the developing economies.

Firstly, Deriveum will provide live update to regulators on the exposure taken on by the financial institutions registered in their respective jurisdiction. While the ECB will have the information on the global level, the relevant local regulators will have full and live access to the dealings with Deriveum of their domestic institutions.

We fully appreciate that adequate and in-time information is sufficient per-requisite for  regulatory action, but is far from enough. Deriveum, through the PSM mechanism, will provide the ability for regulators to single-out institutions that take too high risk and curtail their ability to offer competitive rates, without harming the debt segment, the issuer or the market participant’s reputation.

Lastly, in the regulatory sandbox of the Bank of Lithuania/ECB, we have developed a detail roadmap on implementation of border cases, premature terminations, effective breach of law, changes to local regulation, abuse and fraud. Those scenarios provide the regulators with a number of tools that can be deployed in defense of individual rights or to safeguard the financial interests of their respective nations.

For further information please contact us.