Five banks aim to apply share rules more consistently
Interpretations can leave positions underreported

LONDON, Sept 25 Reuters Goldman Sachs and HSBC are among a group of five banks adopting a common global approach to disclosing clients39; stock positions, a move which participants say could help cut costs and bolster transparency.

The group, which also includes Barclays, BNP Paribas and one other bank, is working on a tool to minimise the risks of underreporting, particularly when investors make socalled short bets or build stakes using derivatives, two sources told Reuters.

Regulators require investors to report the securities they hold when certain thresholds are breached, which requires complex, timeconsuming analysis of the rules. If there is room for interpretation, this can lead to missteps and penalties.

Banks have been investing in socalled RegTech to cut the costs of complying with such rules through automation.

Now the group of five banks, working with RegTech specialist Droit, is looking to streamline efforts and further lower costs.

Goldman Sachs Global Head of Position Regulatory Reporting, Pete Chisholm, told Reuters that the initiative, called Endoxa, is the first bankled consortium to tackle global rules on disclosures reporting,

This is about whether all the banks across the world understand the rules exactly the same, Chisholm said, adding there was a risk that the market data the public relies on could be inaccurate because of the lack of…