NEX Regulatory Reporting announced its intention to apply to become a trade repository for the Securities Financing Transactions Regulation (SFTR) and launch a dedicated reporting solution, pending the issuance of the final technical standards from ESMA.
It will in time add the SFTR trade repository and solution to its Global Reporting Hub to provide clients with an end-to-end solution for the securities lending and repo markets. The SFTR trade repository will be built and hosted in the cloud to ensure client data is processed and stored in a highly secure and robust environment.
NEX RR will connect to the BrokerTec and ENSO platforms so that clients can automatically transfer their transaction data to the SFTR trade repository. The BrokerTec EU repo platform currently processes 10,000 repo trades per day with a total nominal trading volume of €250 billion, for over 90 clients, while the ENSO platform services over 100 hedge fund and asset management clients and has $1 trillion in client assets under advisory.
Intended to provide transparency and oversight on the use of securities financing transactions in the multi-trillion Repo and securities lending markets, SFTR will require financial and non-financial counterparties to report transactions to an authorized trade repository. Initially due to come into effect in Q4 2017 with a nine-month phase in period, the market anticipates that SFTR will come into effect during Q2 2019. Currently in review with the European Commission, ESMA is expected to release the final draft technical standards within the coming months.