Deutsche Börse announced this Tuesday that its Regulatory Reporting Hub would be adding a new solution for the Securities Financing Transactions Regulation (SFTR) to help its clients manage their reporting data quality, efficiency as well as manage any challenges associated with the regulation.
The SFTR regulation requires firms within the European Union (EU) to report their Securities Financing Transactions (SFTs) to a trade repository that’s registered by the European Securities and Markets Authority (ESMA).
Broadly speaking, SFTs are transactions where securities are used to borrow cash or the other way around. This mostly includes repos, securities lending activities, as well as sell/buy-back transactions.
According to the statement, Deutsche Börse’s SFTR solution will cover data collection, validation, enrichment, submission report construction, and trade repository integration with REGIS-TR.
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The Regulatory Reporting Hub is a platform that offers numerous regulatory compliance solutions. Via the platform, clients of the Frankfurt-based firm will be able to report any type of SFTs.
Commenting on the solution, Thomas Feindt, Head of Regulatory Services at Deutsche Börse said: “Deutsche Börse’s Regulatory Reporting Hub will deliver a unique solution for SFTR by leveraging the Group’s specific assets and reference data. Deutsche Börse’s SFTR reporting service enables our clients to leverage synergies across multiple regulations.”
Furthermore, the Regulatory Hub will also ensure that Eurex Clearing’s cleared securities lending and repo business is SFTR compliant and will allow members to strengthen their SFTR reporting through Eurex Repo and Eurex Clearing data.
The SFTR solution aims to reduce the implementation for clearing participants while also increasing reporting efficiency by using consistent data, the statement released today said.
SFTR Regulation to Come into Full Effect in 2021
The SFTR will come into effect in stages. The first stage, which will be applicable to banks, will commence on April 11, 2020. The regulation will then be implemented for buy-side firms on October 11, 2020, and will be in effect for all parties on January 11, 2021.