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SFTR Inspires Firms to Consolidate Processes for Regulatory Reporting Regimes: IHS Markit and Pirum Survey
20 July 2021
A
new survey of 80+ in-scope firms by IHS Markit and Pirum shows
that more than 70 percent of respondents are aiming to consolidate
their diverse regulatory reporting processes under a single
platform following the implementation of the Securities Financing
Transaction Regulation (SFTR). Fifty-four percent of surveyed firms
also say they have used the SFTR implementation as a catalyst for
rethinking their regulatory reporting processes for various
regimes, including the Markets in Financial Instruments Directive
(MiFID) and European Market Infrastructure Regulation (EMIR).
Based on overall survey feedback from market participants, IHS
Markit believes that SFTR will likely serve as a model for future
regulatory reporting requirements. Looking ahead, firms anticipate
lengthy consultation periods on new and amended regulations, more
prescribed data standards and validation rules, as well as the
prospect of additional reporting requirements. Seventy-nine percent
of respondents acknowledged that they have additional reporting
requirements since SFTR went live.
Key survey insights include:
Success of Technology - 87 percent say they
are currently experiencing little to no challenges following SFTR
implementation.
Unique Transaction Identifiers (UTI) Pairing -
80 percent indicated they have been able to successfully pair all
or most UTIs, compared with only 28 percent who are satisfied with
their current UTI pairing efforts for EMIR several years
post-implementation.
Data Sourcing - 78 percent have overcome most
challenges on sourcing the correct data from their
internal/upstream systems and are receiving high rates of
acknowledged (ACK) messages from trade repositories.
Repository Reconciliations - Almost 50 percent
are currently focusing efforts on improving reconciliations and the
resolution of reconciliation breaks between trade
repositories.
Commenting on the survey, Pierre Khemdoudi, SVP of Equities and
Regulatory Reporting at IHS Markit said, "It is clear that while
the implementation of SFTR was complex in many ways, market
participants rose to the occasion and successfully navigated
challenges through innovation. As firms recognize the value of
streamlined reporting and the need for data harmonisation, there is
a strong opportunity to leverage enhanced analytics for greater
insights on transactions."
With over two decades of expertise in trade and transaction
reporting, IHS Markit is a world-leading provider of RegTech
solutions for banks, brokers, hedge funds, asset managers,
insurance companies and corporates. IHS Markit serves more than 400
firms in monitoring multi-jurisdiction reporting for MIFID, EMIR,
SFTR, ASIC, MAS, CFTC, SEC and other global reporting regimes.
For more information on Global Regulatory Reporting Solutions from
IHS Markit, visit our
product page.
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
