More than 40 global leaders in securities finance are now collaborating with IHS Markit and Pirum Systems to develop technology for SFTR requirements
Business information provider IHS Markit (INFO) today announced that ABN AMRO, Banco Santander, Bank of America Merrill Lynch, Barclays, Goldman Sachs, ING and three other financial institutions have joined its technology design team for Securities Financing Transaction Regulation (SFTR) reporting.
“With significant engagement from more than 40 industry leaders, we are confident that we are developing a comprehensive, universal SFTR reporting solution that will streamline compliance requirements for the full range of firms active in the securities lending, repo and prime brokerage markets,” said Pierre Khemdoudi, managing director and global co-head of equities, data and analytics at IHS Markit.
SFTR was enacted by the European Parliament in 2015 to provide greater transparency on cross-asset class lending, borrowing, repurchase agreements and sell/buy-back agreements among counterparties in the EU. Firms subject to the regulation will have to report 155 data fields, including a unique transaction identifier (UTI), a legal entity identifier (LEI) and a master agreement for each trade, on a daily basis. Transaction reporting requirements under Article 4 are expected to begin in Q1 2020.
Since 2017, leading financial institutions and other partners have been working with IHS Markit and Pirum Systems to develop the IHS Markit SFTR reporting solution. The solution will streamline trade reporting to repositories for repo and reverse repo agreements, securities loans and borrows, commodities loans and borrows, prime brokerage margin lending and collateral re-use.
To ensure interoperability within the industry ecosystem, IHS Markit is also engaging vendors, trade repositories and agents with approved publication arrangements (APAs) on the design of its SFTR reporting solution.
SFTR will be phased in through 2020, and additional reconciliation requirements are under consideration for a later date.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd and/or its affiliates. All other company and product names may be trademarks of their respective owners © 2019 IHS Markit Ltd. All rights reserved.