From CEOs to board members to operational managers, regulatory compliance is an ongoing concern. In a rapidly changing marketplace where complex regulations come from multiple regulatory bodies, the consequences of non-compliance can be costly to the enterprise in time, money and damage to their reputation. JWG, a London think tank, has created RegDelta – a state-of-the-art regulatory change management platform - that allows individual stakeholders to quickly understand the impact of regulations and maintain a single source of truth for their regulatory obligations. Hear Elliot Burgess, Head of Product and Client Services at JWG and Paul Gunstone, Sales Director at Smartlogic discuss the challenges organizations face identifying and complying with relevant regulations, JWG’s approach to taming the regulatory tiger with semantics and see a demo of the JWG RegDelta platform.

1. Taming the regulatory tiger
Applying semantics to regulatory change management
Wednesday, September 13th 9 am – 10 am central

2. Who’s speaking today?
Paul Gunstone
Sales Director
Smartlogic
Elliot Burgess
Head of Product & Client Services
JWG

3. A few housekeeping items
• This webinar is in broadcast mode
all participants are muted
• Please put your questions in the
GoToWebinar panel and we’ll
answer as many as we can in the
Q & A session
• This broadcast is being recorded –
replay information will be sent to
all registrants following the
broadcast
• We encourage you to share replay
information with peers and
colleagues

4. A bit about JWG
The pain and pace of regulatory change
The current situation
RegDelta’s approach to regulatory change management
RegDelta demo
Smartlogic – who we are, what we do and why Semaphore is best in class
Summary
Q & A
Agenda

5. • We are an independent think-tank which provides intelligence to help
financial services implement regulatory change in a better, faster,
cheaper and safer manner
• Our mission is to help regulators, financial institutions and technology
companies to determine how the right regulations can be implemented
in the right way
• Since 2006, we have utilised our unique position to achieve results
through our innovative approach, collaborative model and ground-
breaking RegDelta platform
Who are JWG?

6. JWG - making the ‘ecosystem’ work for you
Tracking waves of
reform
Crowdsourcing implementation
intelligence
Building next generation
technology
Monitoring, validating
and networking
Collaborative,
comprehensive and
trusted groups
Smart, immediate, scalable
RegDelta’s regulatory change
platform
Information science, next generation technology, safe delivery channels

7. The pace of FS regulatory change
UK ringfencing final implementation date
Choice Act review
End of initial consultation period for Reg AT
Wave 2: Resetting the policy Consultation/standards The 3rd wave
Behind schedule
Expected date
Target met
Source: JWG as of Q1 2017
TRIM/FRTB
Choice Act
MMFR consideration
SRM bail-in begins
CRS reporting begins
Possible FinCEN implementation
GDPR implementationAMLD IV implementation
SRM contributions
BRRD implementation
Possible agreement on benchmarks
FTT first proposal
Possible renegotiation of FATCA
FACTA gross proceedings reporting beginsFATCA reporting begins
Possible AMLD IV review
DGSD deadlines reduced to 15 days
CRR review and feeding in of FRTBSolvency II Possible Solvency II review
T2S fourth wave
T2S third wave PSD 2 implementation
AIFMD review due PRIIPS implementation
AIFMD/UCITS V reviews dueUCITS V transposition
MiFID II
2015 2016 2018 2019 2021
Trading/post-tradeStructural/riskFinancial
crime
AIFMD/PRIIPS KIDs/UCITS V-VI/MMFR/ IORP II
SEPA/PSD 2/T2S
CRR-CRD IV/Solvency II/BCBS239/AnaCredit
SSM/SRM/BRRD/DGSD
AMLD IV/FinCEN/GDPR
Market structure
Fund management
Payments
Risk management
Systemic risk and resolution
Protection of the system
2017 2020
MiFID II transposition
CRS implementation
Trilogue on benchmarks
IFRS/Benchmarks/FTT
Accounting, benchmarks and tax Benchmarks review after 3 years
DGSD enters into force
FATCA/CRS/CDOT
PAD/CASS/SSR/Volcker rule
Consumer protection
PAD transposition deadline
LEIs
FinCEN final rule
CASS entry into force PAD review due
Volcker rule implementation
T2S first wave
T2S second wave
FRTB framework finalisation
CDOT reporting begins
FMIA enters into force
UK ringfencing final rule
IFRS Art. 9
T2S final wave
EMIR/MiFID II-MiFIR/REMIT/SFTR/FMIA/REG AT
SI compliancy deadline
Non-equity CTPs begin
operating
DGSD deadlines reduced to 10 days
BCBS 239 implementation
Margin requirements under EMIR
EMIR Art.9 reporting
End of transition for UCITS
FRTB transposition deadline
FRTB reporting deadline
IORP II compliancy deadline
SFTR
AnaCredit data collection begins
FBAR filing date under FinCEN
SEPA Instant Credit Transfer (SCT Inst) Updated SCT Inst takes effect
Choice Act approved
MiFID review
BREXIT

8. The problem with managing regulatory change
Source: JWG as of Q1 2017
Too much
volume
90,000,000
Numbers of regulatory
paragraphs published by 2020
from 500+ global regulators
15%
Time spent per week by
compliance officers tracking
regulatory documents
50%
Budget spend by Data and IT
functions on remediating
obligations already implemented
Source: JWG analysis
Source: Thomson Reuters Cost of Compliance Report
2017
Source: Global Tier 1 client
$321bn
Total fines paid by the 50 largest
European and US banks 2009-
2016
Source: BCG Report: Staying the Course in Banking
Keeping on top of change is stretching Compliance, Operations and Technology functions for many of the world’s financial services firms
Not enough
time

9. The current situation
Spot it Know it Do it
Reg
change:
BAU:
Policy
Tech
Ops
Data
Structure
Legal
Compliance
Ris
k
Operations  No central control
point
 Increased risk of
missing key
requirements
 Increased potential for
regulatory-related fines
Project Manager
Compliance
Legal Operations
RiskReporting
Tax
Buy-side
Hedge fund
ARM/TR
Technology

10. RegDelta for regulatory change management
RegDelta’s smart library provides the context for every FS regulatory initiative, article, clause, paragraph and footnote, and alerts users to relevant
updates and changes. The user-friendly dashboard delivers the latest visualisation, library management tools, workflow and reporting. It also
enables firms to ‘crowdsource’ their interpretation of the rules and build a solid corporate memory of the house view. Say goodbye to tracking
spreadsheets, confusing emails, unclear ownership, unintelligible PowerPoints and highlighter battles, and say hello to a smarter way to write and
maintain regulatory interpretations.
Functionality available in RegDelta:
• Search library via regulation, regulator, issue date, topic or impact
• Create custom alerts for newly published documents
• Rule interpretation creation and status monitoring
• Document analysis with document-level and paragraph-level workflow:
– Assign ownership of documents and paragraphs to workstreams, functions and individuals
– Comment on paragraphs
– Assess impact of paragraph against company policy
• Run paragraph reports on tagged objects
• Export reports to Excel
‘RegDelta is the semantic rule book, enabling straight through processing to
machine readable interpretation’

11. RegDelta Demo

12. RegDelta Architecture Diagram
Semaphore
Classification server
Semaphore
Semantic Enhancement Server
Web Frontend – HTML/JavaScript
Semaphore ontology
editor
Semaphore Publisher
JWG Analysis
team
User
AP
I
No SQL database
Reg docs
Text mining
Tracking tools
Metadata generation
Single Sign On
Scala/play layer
Regulation Tracking
Semantic layer
Application layer
Database layer

13. Smartlogic Semaphore Inc.
Who we are
• Makers of Semaphore – the enterprise
class, W3C standards-based semantic
platform built on graph technology
• Global customer base of 250 organizations
• Solving business problems in many
industries, including Life Sciences, Financial
Services, Media and Entertainment,
Manufacturing, Aerospace and Defense
and Public Sector
• On-premises, in the cloud and hybrid
deployment
We transform enterprise information
into actionable intelligence

14. 3 functional capabilities of Semaphore
ENRICHMENT
Enrich the asset with tags defining what
it’s about
For example
• In the data analyzed for targeted
marketing campaigns is a sales receipt
for item # 123-456/elsa
• The model knows that item numbers in
this family are keychains and that Elsa is
a character in the movie Frozen
• By enriching the data element (the cash
register receipt) with additional context
(this is an Elsa keychain and connotes an
interest in the movie Frozen), additional
valuable information about the interests
of the customer can be used to tailor a
marketing offer that will attract him or
her
HARMONIZATION
Harmonize disparate information sources
against a canonical model
For example
• A data lake contains measurements from
different sensors
• Different sensors use different
vocabularies – one might report
tolerance in increments of ¼”, while
another might report in μmeters.
• The model knows that a sensor with an
ID from a particular family uses a specific
unit of measure and that the relationship
between that unit of measure and
another is in a specific formula used for
conversion to a common unit of measure
for analysis
EXTRACTION
Extract facts, entities and
relationships
For example
• Banks must demonstrate to regulators
that they have sufficient assets to survive
in unfavourable conditions – a process
known as “stress testing”
• The data elements that they need to
analyse are buried in information assets
such as real estate investment
agreements, stock and bond portfolios
and others
• The various information elements are
semantically modelled and the model
used to extract the critical entities, facts
and relationships
• The extracted data elements are
analysed in simulation of different
economic conditions to determine
whether the assets are sufficient

15. Why is Semaphore best in class?
• Easy to use
– SMEs directly participate
– Full editorial control
• Flexible
– Model-driven rule generation
– Leverage linked vocabularies
– Metadata management
– Cloud, Hybrid, On-premises
• Precise and auditable
– Rule-based classification
– Text analytics based on AI, Natural Language
Processing and machine learning
– Full suite of analysis tools to track and audit
results
• Enterprise grade
– Scalable
– Integrates with existing investments
Ease of
use
Precision and
accuracy
Enterprise grade
Cost effective
New data
opportunities
Regulatory
Business user IT manager
Chief Data
Officer
Management

16. We keep pace with our customers’ changing needs and market demands while
maintaining an unwavering commitment to quality
Product Development
& Maintenance
Semaphore Suite:
• Usability/workflow features
• New integrations
• Advances from R&D
• Maintenance
• 24x7 software incident Customer
Support
• Software patch access
• Software upgrade access
• Documentation
Semaphore Software
Enterprise semantic platform
• Easy to use
• Accurate
• Advanced graph architecture
• High performance
• OOTB integrations
• Enterprise scale
• Cloud, Hybrid, On-premises
Maintenance
• 24x7 software incident
customer support
• Software patch & upgrade
access
• Documentation
• Life with Semaphore portal
Semaphore Suite:
• Usability/workflow features
• New integrations
• Advances from R&D
• Maintenance
• 24x7 software incident
Customer Support
• Software patch access
• Software upgrade access
• Documentation
Professional Services
Our professional services team
works with customers to
accelerate deployments, avoid
mistakes and maximize their
return on investment with
Semaphore.
Specialist knowledge in:
• Information science
• Ontology management
• Classification
• Triple/graph store
• Integration
• Content management
• Enterprise search
• Semantically-powered user
experience
Training
Semaphore Suite:
• Usability/workflow features
• New integrations
• Advances from R&D
• Maintenance
• 24x7 software incident Customer
Support
• Software patch access
• Software upgrade access
• Documentation
Self-paced training, short videos
and student exercises delivered
online or customized for your
enterprise.
• Model creation and
management
• Rule management
• Auto-classification
• Testing and mitigation
strategies
• Systems administration &
integration
Partners
Semaphore Suite:
• Usability/workflow features
• New integrations
• Advances from R&D
• Maintenance
• 24x7 software incident Customer
Support
• Software patch access
• Software upgrade access
• Documentation
We partner with:
• Industry leading technology
organizations
• System implementation
specialists
• Expert industry consultants
To deliver enterprise-grade
solutions to organizations around
the world.
Smartlogic products and services

17. Summary
The pace and complexity of regulatory change is occurring at an alarming rate
Keeping on top of change is stretching compliance, operations and technology
functions of today’s enterprises and putting them at risk of non compliance and
sanctions
JWG has a proven process and technology stack, which includes Smartlogic’s
semantic platform Semaphore, that provides the context for every FS regulatory
initiative, article, clause, paragraph and footnote, and alerts users to relevant
updates and changes
The RegDelta platform eliminates tracking spreadsheets, confusing emails, unclear
ownership, unintelligible PowerPoints and highlighter battles, and delivers a
smarter way to write and maintain regulatory interpretations

18. Q&A
Thanks for joining the webinar
We’ll be taking questions now
Q A&

19. SMARTLOGIC – AMERICAS
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SAN JOSE, CALIFORNIA, 95113
TEL: 408 213 9500
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TEL: +44 (0)203 176 4500
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EMAIL: INFO@SMARTLOGIC.COM
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