SFTR Solution

Meet the rapidly approaching SFTR trade-reporting challenge

As part of the policies identified by the Financial Stability Board (FSB) to increase transparency across Securities Financing Transactions (SFTs), the European Union introduced the Securities Financing Transaction Regulation (SFTR). The regulation includes a number of new rules for market participants including a requirement to report all SFTs to an approved Trade Repository (TR). The trade-reporting regulation mandated under Article 4 of the draft SFTR legislation will compel the securities finance industry to radically restructure its data architecture – integrating numerous and often disparate, data sources to enhance transparency.

IHS Markit offers a fully hosted data and reporting solution for Securities Financing Transactions Regulations (SFTR) that sets an industry wide standard, providing the foundation needed to reconcile trading activity down to the UTI and LEI level of granularity. The SFTR solution offers participants turnkey connectivity to trade repositories. This modular, fully hosted, solution leverages our proven track record of delivering industry wide reporting solutions and our 10 years of partnership with the securities lending community.

Key benefits:

  • Built-in infrastructure and relationships – Tap into the existing relationships that IHS Markit has built across the securities finance industry. Our network of data contributors, built over the last 10 years, represents $15 trillion of inventory held by over 120,000 underlying funds. We process and match over 3 million transactions daily using a reporting spec that already covers the majority of fields required by the latest draft of the SFTR legislation.
  • Flexibility – Use the solution’s modular nature to meet your individual needs and structure. Flexibility starts with the data ingest architecture all the way down to trade reporting as the solution will be connected to every trade repository.
  • Future-proof compliance – Get a solution that has the flexibility to deliver transaction reporting across future legislation, which might require transaction reporting, as well as any additional transparency/risk reporting framework that could be mandated across the securities finance industry

Customers

  • Securities finance
  • Repo
  • Asset Managers
  • Sovereign Wealth Funds
  • Pension Funds
  • Securities Lending Traders
  • Prime Brokers

Features

  • Trade warehouse – A fully hosted database at the heart of the solution, this module pulls data from the multitude of industry data sources and provides the standardized golden copy of all the industry’s trading and collateral activity, regardless of source
  • Reconciliation engine – A real-time module that reconciles trades and creates the SFTR-mandated UTIs at the LEI level with a full audit trail of the process including matching status reports
  • Reporting solution – A turnkey trade repository connectivity tool that will automatically deliver in scope transaction to the chosen trade repository
  • Analytics layer – A framework for not only meeting the immediate SFTR reporting requirement and future reporting legislation, but for also delivering a framework for unparalleled risk and transparency solutions

SFTR Solution from IHS Markit

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