The European Regulation No. 2015/2365 on transparency of securities financing transactions and of re-use (SFTR) introduces reporting requirements for counterparties to a securities financing transaction (SFT) into a Trade Repository (TR). Those reporting requirements will be phased-in in four stages depending on counterparty classification as follows:
- 11 April 2020: Banks (credit institutions) and investment firms - 12 months after entry into force
- 11 July 2020: CCPs & CSDs - 15 months after entry into force
- 11 October 2020: Buy-side ((Re-)Insurance undertaking, UCITS & its mgmt. company, AIF managed by AIFMs, Institution for Occupational Retirement Provision) - 18 months after entry into force
- 11 January 2021: Non-Financial Counterparties (NFCs) - 21 months after entry into force
Deutsche Börse AG’s Regulatory Reporting Hub (RRH) is adding a new all-rounded solution for Securities Financing Transactions Regulation (SFTR) to its suite of regulatory reporting services. This solution will help clients to ease their SFTR reporting challenges, will improve reporting data quality and master reporting efficiency. The solution also features complementary governance, operational management and compliance supporting features and services.
The Regulatory Reporting Hub’s SFTR solution offers the full regulatory reporting chain covering data collection, validation, enrichment, submission report construction and Trade Repository integration with Regis-TR. RRH SFTR clients will be able to report any type of Securities Financing Transactions (SFTs) through the platform:
- Repurchase agreements (‘Repos’)
- Sell-buy back or buy-sell back transactions
- Securities or commodities borrowing/lending transactions
- Margin lending agreements
All received and validated reports will be feeded on behalf of our clients directly into Regis-TR, Deutsche Boerse Groups Trade Repository.
Unique Enrichment together with Eurex Repo and Eurex Clearing
Moreover, RRH will ensure SFTR compliance for Eurex Clearing’s cleared Securities Lending & Repo business. Thereby RRH can offer clearing members of Eurex Clearing the unique opportunity to enrich their SFTR reporting with Eurex Repo’s and Eurex Clearings data (Transaction, Principal Collateral, CCP Margin) for all SFT-transactions
- Executed on Eurex Repo and/ or
- Cleared at Eurex Clearing (Cleared Repo incl. GC pooling, Lending CCP)
By doing that, the customers will benefit from significantly increased reconciliation matching rates and reduction of in-house investments to construct reliable reporting data loads.
Key features of SFTR solution
The Regulatory Reporting Hub SFTR solution covers the full regulatory reporting value chain processing from collection of data to TR feedback integration:
- Access models: GUI/ file feed, incl. delegated reporting and assisted reporting for third parties
- Validation of submitted data for authentication, file format, regulatory , business logic and cross regulation rules
- Enrichments for Eurex Clearing / Eurex Repo clients: Ability to enrich cleared SecLending and cleared Repo Business (Counterparty, Loan& Collateral, CCP Margin Data), incl. capture of UTI and Clearing timestamp and action types
- Other Enrichments: Determination of Standard Action Types, Reference Data
- Record Production: in ISO20022 format and submission into Regis-TR, incl. TR responses
- Backloading Support
- Identification of SFTs reportable under MIFIR (with ESCB entities) – those can be covered via RRH leveraging its Art. 26 Transaction reporting offering and ARM status
- Coverage of all SFT- types reportable under SFTR
- Support for all types of entities (e.g. investment firms, corporates) subject to reporting obligation
- Data streaming and processing from submission into RRH through validations, enrichments and data formatting all the way to the regulated Transaction Repository (Regis-TR)
- Reduced Risk of Sanctions through pre-validation of submissions and consistent enrichment (Action types, Reference data)
- Exclusive Enrichment for Eurex Clearing and Eurex Repo cleared SFT business (e.g. cleared Repo incl. GC Pooling, Cleared SecLenindg) with the benefit of increased matching rates
- Leveraging DBAG’s 20 years of experience in Regulatory Reporting and managing and supporting regulatory change, ranging from MiFID I over EMIR to MiFID II
- Coverage of multiple jurisdictions and regulations also beyond SFTR to enable the move to a One-Stop Regulatory Reporting Hub with related efficiencies:
- MiFID/ MIFIR pre- and post-trade requirements (ARM/ APA) with connectivity to all relevant NCAs
- Commodity Position Reporting (Art. 58)
- SFTR incl. MiFID/ EMIR
- Opportunity to unlock cross-regulation synergies between SFTR and MiFIR (SFTs against ESCB entities) by way of leveraging RRH’s Art. 26 Transaction Reporting solution (ARM), reporting into all relevant NCA’s – under EU regime.
- Competitive pricing and low implementation cost
- Big data processing under high-security technology, incl. Audit Trail
Contact us for timely onboarding
Deutsche Börse Group’s Regulatory Reporting Hub and its industry experts are committed to help you ensure full SFTR-compliance as your partner. With SFTR as new Regulation at RRH, we will continue on the journey to our vision of a one stop shop for all regulations, enabling our clients to unlock cross-regulation synergies. With SFTR and MiFIR features integrated, the vision now comes alive.
Therefore, we kindly asks all companies to show their interest for SFTR by registering onto the contact form.
Early adopters and design group participants may be granted admission to an early adopter incentive scheme.