SFTR (Securities Financing Transaction Regulation) Reporting Solution
The European Commission want to increase the transparency of Securities Financing Transactions markets, which are not currently covered through other regulations. As such this regulation will require firms to report their SFTs to an approved EU trade repository.
What is the timeline for this regulation?
- Q1 2016 SFTR regulation entered into force
- Q1 2017 ESMA submitted the final draft of RTS to the EU Commission
- Q1/Q2 2018 Expected endorsement of final draft by the European Commission
- Q2 2019 SFTR phased reporting to begin
How will SFTR affect firms?
ESMA has published the final report on the standards implementing the SFT regulation. Firms affected include banks, investment firms, CCPs, CSDs, insurance, reinsurance undertakings, pension funds, UCITs, AIFs and non-financial counterparties. Whilst the industry awaits endorsement of this report by the European Commission, here are some points for firms to consider:
- There may be some operational challenges in generating trade data giving the short T+1 reporting timeframe
- There may be some complex chains resulting from re-use of collateral securities
- Rehypothecation may become a key point of contention for firms
- The introduction of minimum standards for collateral valuation will eliminate obscure weaknesses in balance sheets
How can UnaVista help you with SFTR?
UnaVista is an award-winning European Trade Repository, so when SFTR begins you will be able to report all of your SFTs via UnaVista. Our state of the art trade repository for derivative transactions allows clients to stay ahead of upcoming regulatory reforms and technological developments in the reporting industry in an ever shifting landscape.
Experienced Helping Hand
- Experienced regulatory team - London Stock Exchange Group has been at the forefront of helping clients with European regulations for decades. In addition to UnaVista Trade Repository, we are a trusted, neutral and regulated venue already providing many regulatory services such as Regulatory News Service (RNS) and National Numbering Agency (ISIN).
- Expert training and support - UnaVista’s CPD-certified training courses helps firms get a better understanding of the regulation and the reporting process. UnaVista provides training to clients and non-clients in a variety of formats; face-to-face, virtual and bespoke on-site training. Our support team offer expert 24/5 assistance to clients.
Create Reporting Efficiencies
- All your global reporting in one place - UnaVista assists with a wide range of regulations. UnaVista’s Rules Engine acts as a central hub for the production of data to meet global regulatory reporting requirements. With linkages to global trade repositories the UnaVista Rules Engine helps firms to meet global regulations such as EMIR and MiFID II/MiFIR.
- Reference data to enrich your own - Enrich your data using Exchange’s reference data from source (LEI, ISIN, SEDOL, etc.) and plug in third party reference data you require. MTS Data is also sourced directly and exclusively from the MTS interdealer market and includes benchmark real-time data, reference data, reference prices and historical data, providing the benchmark data source on the fixed income market.
Simplify your Reporting
- Utilise your connection to MTS to report via UnaVista - MTS and UnaVista are coming together to give repo participants the opportunity to fulfil their trade reporting obligations through an approved EU trade repository all through their single connection to LSEG.
- Easy to use platform - UnaVista can work in the way that suit yours business. Clients can import and export data in any format, and take advantage of highly customisable user permission and validation rules.
To find out more about the regulation, visit our SFTR regulation page.