Droit Company Profile

Background

Founded in 2012, Droit is a technology firm specializing in computational law and regulation, focusing on advancing global regulatory compliance and real-time controls. The company partners with leading global financial institutions to develop forward-looking operational and regulatory solutions within the evolving financial landscape. Droit's mission is to provide robust, enterprise infrastructure that facilitates compliant and optimal trading of derivatives across asset classes, regulators, central counterparties (CCPs), and execution platforms.

Key Strategic Focus

Droit's strategic focus centers on delivering mission-critical products that enhance global regulatory compliance and real-time decision-making. The company's core objectives include:

Transactional and Behavioral Compliance: Managing and automating complex global rule systems to eliminate delays, errors, and lack of transparency in decision-making processes.

Real-Time Decision-Making: Providing solutions for pre-trade and post-trade controls, evaluating the permissibility of transactions, and ensuring compliant regulatory reporting.

Global Regulatory Coverage: Monitoring numerous sources of regulation and market microstructure changes, offering real-time rules and data for derivatives and securities across all asset classes and G20-aligned regulatory regimes.

Financials and Funding

Droit has demonstrated consistent revenue growth since its inception. In 2023, the company's revenue reached approximately $42.6 million.

The company's funding history includes:

Series A (November 2016): Raised $16 million, led by Goldman Sachs, with participation from Pivot Investment Partners and Wells Fargo.

Series B (March 2023): Secured $23 million, co-led by Pivot Investment Partners and UBS, through its venture and innovation unit UBS Next.

The capital raised is intended to support global growth and the development of new products, particularly in the wealth management sector.

Technological Platform and Innovation

Droit's flagship platform, Adept, is an innovative, patented system that drives intelligent decision-making in complex, rule-driven environments. Key features include:

Regulatory Rule Implementation: Provides an implementation of regulatory rules reflecting industry consensus, enabling institutions to ensure compliance with complex global laws.

Real-Time Decision Evaluation: Evaluates thousands of automated trading decisions per second, maintaining a comprehensive and traceable audit trail.

Traceability and Transparency: Generates decisions directly from digitized rules, regulations, and internal policies, visually represented in intuitive logic diagrams linked back to the original sourced text.

Leadership Team

Brock Arnason: Co-Founder and Chief Executive Officer. Arnason has been instrumental in steering Droit's strategic direction and growth since its inception.

John Cooley: Chief Financial Officer. Cooley oversees the company's financial operations and strategy.

Peter Bals: Chief Technology Officer. Bals leads the technological development and innovation efforts at Droit.

Craig Butterworth: Chief Commercial Officer. Butterworth is responsible for driving the company's commercial strategy and client relationships.

Joceline Zheng, Ph.D.: Chief Product Officer. Dr. Zheng manages product development and ensures alignment with market needs.

Leadership Changes

In July 2021, Droit appointed Craig Butterworth as Chief Commercial Officer to enhance its commercial strategy and client engagement.

Competitor Profile

Market Insights and Dynamics

The regulatory technology (RegTech) market is experiencing significant growth, driven by increasing regulatory complexities and the need for efficient compliance solutions. Financial institutions are investing in technologies that automate compliance processes, reduce operational risks, and ensure adherence to global regulations.

Competitor Analysis

Key competitors in the RegTech space include:

Ascent: Founded in 2015, Ascent provides AI-driven solutions for regulatory compliance, offering automated tools to help financial institutions manage regulatory changes effectively.

ComplySci: Established in 2003, ComplySci offers compliance management solutions, focusing on monitoring employee activities and ensuring adherence to regulatory requirements.

ClauseMatch: Founded in 2012, ClauseMatch provides a platform for document collaboration and management, enabling financial institutions to streamline policy and procedure management.

Strategic Collaborations and Partnerships

Droit has established significant partnerships with major financial institutions, including UBS, Goldman Sachs, Credit Agricole, BNP Paribas, Wells Fargo, and RBC Capital Markets. These collaborations enhance Droit's market position and innovation capacity by integrating its solutions into the compliance frameworks of leading global banks.

Operational Insights

Droit's strategic considerations include:

Market Position: Establishing itself as a leader in computational law and regulation by offering innovative solutions that address complex compliance challenges.

Competitive Advantages: Differentiating through the Adept platform's real-time decision-making capabilities, comprehensive regulatory coverage, and traceable audit trails.

Strategic Opportunities and Future Directions

Droit's strategic roadmap includes:

Product Expansion: Developing new products tailored for the wealth management sector to address specific compliance needs.

Global Growth: Expanding its presence in key financial markets to serve a broader client base.

Technological Innovation: Continuously enhancing the Adept platform to incorporate emerging technologies and address evolving regulatory requirements.