SimCorp announced the go-live of its SFTR cloud solution, available to clients as part of SimCorp’s latest software release, in collaboration with the deltaconX regulatory platform. The go-live delivers buy-side clients significant time ahead of the first wave of the Securities Financing Transactions Regulation (SFTR) reporting requirement, in April 2020.
The Securities Financing Transactions Regulation (SFTR) completes a trinity of core regulations, following EMIR and MiFIR, impacting the global buy-side. With an impressive 155 fields of data, which need to be reported in the hugely complex ISO 20022 format, the regulation demands robust post-trade reporting processes and technology, proving a necessary but challenging requirement for many investment firms.
In recent buy-side discussions, SimCorp has found that data continues to form the critical concern, both in its availability and in the alignment with counterparties. At the same time, the oversight required, especially in the case of delegated reporting, bears an altogether heavier burden on resources.
Carsten Kunkel, head of SimCorp’s Global Regulatory Centre of Excellence, said in a statement: “While the reporting regime may be structurally similar to EMIR, the buy-side cannot write off SFTR as just another EMIR. Up to 40% of the data required is estimated to be difficult to source. Firms cannot afford to take a piecemeal approach and instead must look to consolidated operations and robust regulatory reporting, to tackle the sheer impact to business. SimCorp’s solution provides an unparalleled transparency and control of the data that will be reported, including flexibility to load third-party data, such as tri-party agent collateral reports.”