Intermoney Consultoría, a subsidiary of the CIMD Group, has partnered with Israeli RegTech vendor Cappitech to help their clients expand the compliance coverage for the incoming securities financing transaction regulation (SFTR).
This collaboration also grants Intermoney’s customers wider access to Cappitech’s reporting service, including MIFID II, EMIR, Best Execution, and RTS 27 & 28. It will also support MiFID II reporting for additional instruments that will be in scope when SFTR goes live.
Offered as a SaaS product, Cappitech solutions cater to financial firms such as brokers, banks, and asset managers to automate their trade reporting functions. The company now expands its presence to help Spanish and Portuguese institutions affected by the new regulation keep on top of their reporting requirements.
The new compliance requirements are fundamentally a data challenge, and thus Cappitech will provide their new partners to acquire the reporting software directly or to outsource reporting services to Intermoney, using Cappitech’s technology.
Make or Break Decision: Finding the Liquidity Provider Thats Best for YouGo to article >>
A soft go-live before SFTR deadline
Under the new rules, securities financing transactions such as lending and repo, pension and UCITS funds will have to start reporting in 2020. However, Intermoney and other firms are considering a soft launch prior to their deadline, and dealers are going to require pieces of information prior to that deadline.
Firms subject to SFTR will be required to report 155 data fields daily, including unique transaction identifier (UTI), legal entity identifier (LEI), and master agreement for each trade.
Commenting on the partnership, Joaquín Vázquez, Managing Director of Intermoney said: “In an environment in which regulatory reporting is increasingly consuming entities’ scarce resources, this alliance allows us to offer a best-in-class service at a lower cost of ownership for our customers.”
Ronen Kertis, CEO and Founder of Cappitech, added: “Working with Intermoney, who have extensive experience and long-standing client relationships, allows us to bring our award winning technology to the Spanish market. As with other markets, local financial services firms require integrated solutions that work across regulations and can easily assimilate new ones such as the soon-to-be-implemented SFTR, without adding complexity or excessive cost.”