The European Commission has yesterday adopted the measures under the Securities Financing Transactions Regulation (SFTR), effectively setting the go-live date at Q2 2020.
The European regulation, which aims to increase transparency across Securities Financing Transactions (SFTs), will require market participants to report all SFTs to an approved Trade Repository (TR). With over 150 data fields included, much of this data new to trading desks and operations teams, it is crucial for firms impacted by SFTR to improve and gain control over the quality of their data ahead of the implementation date.
Reporting go-live timeline:
- Q2 2020 – Credit Institutions and Investment Firms
- Q3 2020 – Central Counterparties (CCPs) and Central Securities Depositories (CSDs)
- Q4 2020 – Pension Funds and UCITS
- Q1 2021 – Non-Financial Counterparties
“Q2 2020 might seem far away but given the considerable scale of the SFTR reporting challenge it’s imperative that firms ensure they are using this time wisely to make as much progress as possible,” commented Alan McIntyre, Senior BA and Industry Relations Lead Europe at RegTek.Solutions.
Earlier this year, we launched Validate.Trade for SFTR, the first independent, portable validation engine to support firms with data quality ahead of SFTR’s implementation. Over 700 rules specific to SFTR, as prescribed within the ESMA Regulatory Technical Standards (RTS), have already been built and tested on the platform.
Used by our clients as an essential part of their strategic planning for go-live, Validate.Trade for SFTR was awarded ‘Best Solution for SFTR’ at the prestigious A-Team Group’s 2018 RegTech Awards.
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