Get ready for SFTR reporting

The regulation requires financial and non-financial counterparties to report their Securities Financing Transactions (SFTs) to authorised SFTR Trade Repositories (TR) for direct and immediate data access to NCAs.

NEX Regulatory Reporting is introducing an upgraded user interface, increasing visibility and decreasing manual effort, as well as launching both UK and EU-based SFTR trade repositories.

What is SFTR?

  • SFTR will allow regulators to better understanding the so-called ‘shadow banking’ world through the introduction of an EMIR-like reporting regime for repo, securities lending and margin lending transactions.

  • When the SFTR’s reporting requirements begin to go live, most likely from early 2020, they will broaden the range of information that needs to be provided compared to all existing regimes.

  • SFTR will require 153 fields to be populated, many more than under EMIR or MiFIR.

  • Reporting needs to take place by T+1 in most situations, with trades sent to a new type of approved trade repository built specifically for SFTR.

  • Firms that fall into the scope of SFTR are likely to find that they can’t just ‘copy and paste’ the processes used to implement EMIR, not least because in the repo world information is usually not held in ways that make populating data fields a simple process.

Who must report?

The following types of organisation may fall under the scope of SFTR:

  • Banks

  • Brokers

  • Buy-side custodians

  • Agents

What types of transactions will need to be reported?

  • Repurchase transactions

  • Securities lending and securities or commodities borrowing

  • Buy-sell back transaction or sell-buy back transactions

  • Margin-lending transactions

New features from NEX Regulatory Reporting

We are treating the SFTR as an opportunity to enhance our end-to-end Regulatory Reporting processes, learning lessons from the implementation of EMIR.

  • Enhanced connectivity with our triResolve reconciliation service so that data can be reconciled pre- and post-reporting, to ensure counterparty matching and data accuracy and completeness.

  • A sophisticated new feature that identifies discrepancies between the Unique Trade Identifiers provided by counterparties and resolves breaks, or creates UTIs automatically where none are present.

NEX Regulatory Reporting solution

Controlled from a single, secure and intuitive user interface, clients submit their transactional data, into the NEX Regulatory Reporting Hub in multiple formats and from multiple sources, for data normalisation, enrichment, determination, reconciliation and validation. It is then delivered to the relevant regulatory end-point.

Agile Hub technology enables seamless processing of high data volumes, flexible cross-regime and cross-asset class reporting, making it the ultimate end to end reporting solution.

* NEX Regulatory Reporting will apply to become a trade repository for SFTR pending the issuance of the final technical standards from ESMA.

Are you ready for SFTR reporting implementation?

Book a complimentary consultation with one of our regulatory experts to find out.

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