Finastra adds SFTR tool to cloud reporting service
05 September 2019 London
Image: Shutterstock
Finastra has grown its suite of cloud-based regulatory services with the addition of a Securities Financing Transactions Regulation (SFTR) reporting tool.
The EU’s SFTR, which is slated to go live in April 2020, will require securities finance transactions to be reported to a trade repository for the first time.
The new service builds on the London-based fintech firm’s existing regulatory reporting solution and promises to leverage private cloud technology to meet banks’ needs for fast, automated trade reporting by reducing time and costs associated with data capture and compliance.
A spokesperson for Finastra explained that banks will be able to tailor the service by plugging their solutions into the solution.
According to Finastra, its solution offers a single regulation tool that collects and checks transaction information including repo, securities or commodities borrowing and margin lending agreements from bank's own or third-party systems.
Finastra’s solution is a single regulation tool that collects and checks transaction information including repo, securities or commodities borrowing and margin lending agreements from banks’ own or third-party systems.
The firm confirmed that its platform will maintain previous mandates for other regulations such as for the second Markets in Financial Instruments Directive and the European Market Infrastructure Regulation.
Michael Henssler, general manager treasury and capital markets at Finastra, said: “From April 2020, banks and investments firms will need to start reporting on securities financing transactions–a daunting task should they not have the right resources and technologies in place.”
“Those who choose cloud-based technology will be more prepared when it comes to new regulations and can free up resources to focus on new revenue streams.”
An independent analyst in the field, Virginie O’Shea, research director at Aite Group, noted: “Regulatory risks are minimised when data is securely stored in a cloud environment, and business value can be unlocked from combining data across the silos that exist in nearly every large capital markets firm.”
“Even regulators are using cloud environments for cross-industry data aggregation purposes. In an environment that is as global as capital markets, working with a strategic repository of reporting data is a key benefit as regulators in other jurisdictions may follow their peers in implementing similar compliance obligations.”
The EU’s SFTR, which is slated to go live in April 2020, will require securities finance transactions to be reported to a trade repository for the first time.
The new service builds on the London-based fintech firm’s existing regulatory reporting solution and promises to leverage private cloud technology to meet banks’ needs for fast, automated trade reporting by reducing time and costs associated with data capture and compliance.
A spokesperson for Finastra explained that banks will be able to tailor the service by plugging their solutions into the solution.
According to Finastra, its solution offers a single regulation tool that collects and checks transaction information including repo, securities or commodities borrowing and margin lending agreements from bank's own or third-party systems.
Finastra’s solution is a single regulation tool that collects and checks transaction information including repo, securities or commodities borrowing and margin lending agreements from banks’ own or third-party systems.
The firm confirmed that its platform will maintain previous mandates for other regulations such as for the second Markets in Financial Instruments Directive and the European Market Infrastructure Regulation.
Michael Henssler, general manager treasury and capital markets at Finastra, said: “From April 2020, banks and investments firms will need to start reporting on securities financing transactions–a daunting task should they not have the right resources and technologies in place.”
“Those who choose cloud-based technology will be more prepared when it comes to new regulations and can free up resources to focus on new revenue streams.”
An independent analyst in the field, Virginie O’Shea, research director at Aite Group, noted: “Regulatory risks are minimised when data is securely stored in a cloud environment, and business value can be unlocked from combining data across the silos that exist in nearly every large capital markets firm.”
“Even regulators are using cloud environments for cross-industry data aggregation purposes. In an environment that is as global as capital markets, working with a strategic repository of reporting data is a key benefit as regulators in other jurisdictions may follow their peers in implementing similar compliance obligations.”
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