Wolters Kluwer Financial Services will this week share its insights surrounding Liquidity Supervision, through a newly published . Notably, there are two significant events relating to Liquidity Supervision and Regulatory Reporting due in the next year. These are the introduction of the Additional Monitoring Metrics (AMM) for Liquidity and the Liquidity Coverage Ratio (LCR) becoming a Pillar 1 requirement.

AMM for Liquidity will go live on July 1, 2015, with the first reference date for regulatory reporting on July 31, 2015 and the first remittance deadline of August 30, 2015. AMM is being introduced as a result of Article 415(3) (b) which mandates the European Banking Authority (EBA) to develop implementing technical standards (ITS) that allow competent authorities to obtain "a comprehensive view of an institution's liquidity risk profile, proportionate to the nature, scale and complexity of its activities."

The LCR, meanwhile, will become a Pillar 1 minimum standard October 1, 2015, applied to all firms in the same way. The EBA has defined a phase-in approach to this standard, which some regulators are proposing to deviate from.

Nicos Kynicos, senior Regulatory Reporting specialist at Wolters Kluwer Financial Services, explains in the commentary "Liquidity Supervision: Latest challenges " how firms will have to comply with LCR on a daily basis, meaning that they will need to run their regulatory reporting processes daily. In parallel the AMM ITS also creates more work through six reporting templates, with more than 7,500 cells and 18 validation rules. The reports are required on a monthly basis, although the reporting frequency can be reduced to quarterly depending on certain criteria being met.

As a result of these events firms will require an efficient solution to close their books and generate LCR reports in an accurate manner with appropriate levels of governance and control.

Kynicos has been advising and delivering solutions to financial institutions in the areas of risk management and compliance since the inception of Basel II.

About Wolters Kluwer Financial Services

Wolters Kluwer Financial Services provides customers worldwide with risk management, compliance, finance and audit solutions that help them successfully navigate regulatory complexity, optimize risk and financial performance, and manage data to support critical decisions.AppOne®, AuthenticWeb™, Bankers Systems®,Capital Changes, CASH Suite™, GainsKeeper®, NILS®, OneSumX®, TeamMate®, Uniform Forms™, VMP® Mortgage Solutions and Wiz®. Wolters Kluwer Financial Services is part of Wolters Kluwer, which had 2014 annual revenues of €3.7 billion ($4.9 billion), employs 19,000 employees worldwide, and maintains operations in over 40 countries across Europe, North America, Asia Pacific, and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.

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