The Rising Burden of Reporting

In April 2020, the introduction of SFTR will add reporting on securities finance transactions to the obligations introduced by EMIR and MiFID II to report on OTC and exchange-traded derivatives, money markets and securities. Each new regulation consumes time, budget and often requires changes to business operations.

Time for Regulatory Reporting as a Service

Finastra’s cloud-based solution simplifies transaction reporting, automating the process and collecting, enriching and checking transaction information. By consolidating reporting across regulatory regimes including  EMIR, MiFID and MAR as well as SFTR, it gives you more control and transparency. Transaction reporting becomes a much simpler, lower-cost process.

Regulations Supported

MiFIR Art 26 - MiFID II Art 58 - MiFID II Art 20/21 - SFTR - EMIR - FinfraG

Regulatory Reporting as a Service: Benefits

  • Improve operational efficiency and reduce risk by automating transaction reporting processes
  • Save time with one extraction and enrichment workflow that draws data from multiple source systems
  • Maintain compliance by covering all relevant internal data sources and regulatory-driven trade repositories
  • Stay up-to-date with new regulatory requirements
  • Build insights with customizable dashboards that provide rich information

Optimize resources with the light footprint of a Software-as-a-Service solution:

  • No up-front capital expenditure in IT infrastructure and resources
  • Fast set-up and deployment – the solution is already installed and preconfigured in the cloud
  • Accessibility - all requirement is an internet connection
  • Scalability – grows with your business
  • Access to the latest technology and professional support,  reducing operating risks and ensuring reliability, quality and performance

Regulatory Reporting as a Service: Functionality

  • Sourcing, transforming and enriching data from Finastra, other third-party systems or proprietary file uploads
  • Rule based validation checking to ensure conformance with required message formats
  • Error and reporting status
  • Auditing
  • Configurable operations dashboard for handling workflows and exceptions
  • Realtime and continuation reporting

How Does SFTR Impact the Post-Trade Environment?

The regulation (Article 4 of SFTR) requires affected financial and non-financial counterparties operating in the EU to report counterparty, transaction, collateral composition, margin and reuse details of:

  • Repurchase transactions (repos)
  • Sell-buy back or buy-sell back transactions
  • Securities or commodities borrowing / lending transactions
  • Margin lending agreements

The conclusion, modification or termination of a Securities Financing Transaction (SFT) must be reported to an approved trade repository (TR) that is registered or recognised in accordance with the SFTR. Also, liquidity swaps or collateral swaps that are not defined as EMIR/MiFID derivatives need to be reported.

Depending on counterparty classification the reporting is rolled out in four phases:

  • 11 April 2020: Banks and investment firms
  • 11 July 2020:  CCPs & CSDs
  • 11 October 2020: Buy-side firms including: (Re-)Insurance undertaking, UCITS & its mgmt. company, AIF managed by AIFMs, Institution for Occupational Retirement Provision
  • 11 January 2021: Non-Financial Counterparties (NFCs)

Contact Us for More Information