SFTS: Concerns remain around SFTR data fields
26 April 2018 London
Image: Shutterstock
Concerns around data fields remain for Securities Financing Transactions Regulation (SFTR) compliance, according to a panel at SLT’s Securities Finance Technology Symposium.
The panel, which featured six industry experts, explained that currently, around 40 percent of fields are not currently readily available.
One panellist explained that customers are currently doing a gap analysis and becoming worried about those fields.
However, the panellist said: “I know the industry is working to establish those fields and that the International Securities Lending Association is also doing a lot of work on that.”
There was also a lot of discussion around the technology implications of SFTR. The panel debated whether a buy or build solution is best for clients.
A panellist explained that it can depend on a number of factors, one being the amount of data fields the firm currently has in its system. He explained that people need to consider how data is going to be extracted, and if you do delegate there still needs to be a reporting solution in place.
One panellist noted that 80 percent of his company’s clients are using an intermediary as part of SFTR.
However, another panellist suggested that companies can use existing systems from other regulations such as European Market Infrastructure Regulation (EMIR) and the second Markets in Financial Instruments Directive (MiFID II).
Another panellist advised firms to “spend wisely” whether a firm decides to build or buy.
He said: “You can overcome a lot of complexity if you’re careful with what you build and what you buy. Also, choosing the right company to deal with is critical to get right. There is an incentive to spend wisely.”
The panel, which featured six industry experts, explained that currently, around 40 percent of fields are not currently readily available.
One panellist explained that customers are currently doing a gap analysis and becoming worried about those fields.
However, the panellist said: “I know the industry is working to establish those fields and that the International Securities Lending Association is also doing a lot of work on that.”
There was also a lot of discussion around the technology implications of SFTR. The panel debated whether a buy or build solution is best for clients.
A panellist explained that it can depend on a number of factors, one being the amount of data fields the firm currently has in its system. He explained that people need to consider how data is going to be extracted, and if you do delegate there still needs to be a reporting solution in place.
One panellist noted that 80 percent of his company’s clients are using an intermediary as part of SFTR.
However, another panellist suggested that companies can use existing systems from other regulations such as European Market Infrastructure Regulation (EMIR) and the second Markets in Financial Instruments Directive (MiFID II).
Another panellist advised firms to “spend wisely” whether a firm decides to build or buy.
He said: “You can overcome a lot of complexity if you’re careful with what you build and what you buy. Also, choosing the right company to deal with is critical to get right. There is an incentive to spend wisely.”
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