As firms prepare for the approaching deadlines of MiFID II and EMIR revisions, further regulatory change looms with SFTR – Securities Financing Transactions Regulation – bringing additional reporting requirements to Europe-based market participants.
What is SFTR?
Sharing EMIR’s aim to increase transaction reporting transparency, SFTR will require both financial and non-financial market participants to report details of their securities financing transactions (SFTs) to an approved EU trade repository (TR). These SFTs include repurchase agreements (repos), securities lending, sell/buy-back transactions and margin lending. Reporting must include all details of the relevant terms of the repo, stock or margin loan, the composition of the collateral, whether the collateral is available for reuse or has been reused, the substitution of collateral at the end of the day and the modifications applied.
What you need to know
SFTR represents a significant change to the securities financing world and in order to comply, many firms will need to change their existing processes and overcome many, potentially complex challenges. The reporting obligation has 153 reportable fields, based on ISO20022 standards, and firms engaging in SFTs will need an efficient, accurate and timely reporting process that is able to meet the requirements.
Industry expectation is that the reporting obligation will come into effect at the end of Q1 in 2019; those firms engaging in strategic consultation now will be significantly better placed to adapt.
How can Broadridge help?
WITH FIT-FOR-PURPOSE TECHNOLOGY: A proven leader in helping firms meet regulatory requirements, Broadridge’s technology solution facilitates end-to-end trade and transaction reporting between multiple source systems and destinations, in both real-time and batch. We can offer a specialist SFTR solution with in-depth functionality and the added ability to efficiently consolidate current and future reporting as a strategic platform across multiple jurisdictions.
WITH SUPERIOR DATA CAPABILITIES: The Broadridge solution enables firms to easily extract SFTR-related data and send downstream to a range of third parties.
WITH PROVEN REPORTING CAPABILITIES: Offering accurate and timely trade and transaction reporting cross-asset class, cross-jurisdiction, in real time and T+1, the Broadridge solution can support either end-to-end reporting direct to TRs, or send enrichment data to matching platforms to facilitate their reporting to TRs, or a combination of the two, giving firms control and transparency over the entire post-trade lifecycle.
WITH A SEAMLESS IMPLEMENTATION SERVICE: You can trust Broadridge with every step of your SFTR strategy, from your immediate need for analysis and planning, to a well-managed, carefully controlled go-live.
WITH WORLD-CLASS EXPERTISE: Broadridge has a proven track record implementing multi-jurisdictional trade and transaction reporting for a wide range of market participants globally with multiple clients live in reporting regimes including Dodd Frank, MiFID, EMIR, Canadian, MAS, J-FSA, ASIC, HKMA, and Swiss. See our Case Study below.
Broadridge’s in-depth expertise in both securities finance and trade reporting regimes will enable clients to adapt to SFTR smoothly while minimising operational disruption and reducing the resource impact of complying with multiple concurrent reporting mandates.
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