Be ready to use flexibility to provide liquidity in implementing SFTR
21 November 2018 London
Image: Shutterstock
Firms must be ready to use flexibility to provide liquidity for all the maturities in securities finance transactions, according to Antonio Zavettieri, finance collateral management operator at Banco BPM.
Speaking at this year's Marcus Evans conference on SFTR implementation, Zavettieri advised the middle and back office to share the results of the priority list of the front office team.
He said: “Analyse the possibility to give the responsibility of reporting to the department involved in the European Market Infrastructure Regulation (EMIR) reporting.”
Additionally, he advised firms to check opportunities to optimise costs and explore the possibility of profiting from their EMIR reporting teams.
He explained that firms should consider dealing with the same trade repository used for EMIR reporting and evaluate to engage a European trade repository.
He added: “We estimate to start the reporting project of securities financing transactions by the end of November, establishing a consistent approach to Securities Finance Transactions Regulation (SFTR) reporting and data management.”
Zavettieri also highlighted the importance of establishing priority for the implementation of SFTR. He said: “Give priority to the needs of funding, in implementing SFTR, it’s crucial in order to provide liquidity to the bank in the short and medium period.”
“We have also to consider the importance of securities financing transactions to manage the liquidity coverage ratio and net stable funding ratios (NSFR) to be compliant with the regulations.”
He continued: “Considering the fact that in our case the implementation project of reporting securities financing transactions isn’t yet in place, from my point of view could be a good idea to start the implementation of the reporting beginning from electronic and bilateral repos for the reasons above. Securities lending and structured repos could follow if we will not ready in time.”
Zavettieri added: “It could be appropriate investing resources in a reconciliation tool between all the procedures used for securities financing transactions in particular for matching the transactions starting from the position keeping up with other tools.”
Speaking at this year's Marcus Evans conference on SFTR implementation, Zavettieri advised the middle and back office to share the results of the priority list of the front office team.
He said: “Analyse the possibility to give the responsibility of reporting to the department involved in the European Market Infrastructure Regulation (EMIR) reporting.”
Additionally, he advised firms to check opportunities to optimise costs and explore the possibility of profiting from their EMIR reporting teams.
He explained that firms should consider dealing with the same trade repository used for EMIR reporting and evaluate to engage a European trade repository.
He added: “We estimate to start the reporting project of securities financing transactions by the end of November, establishing a consistent approach to Securities Finance Transactions Regulation (SFTR) reporting and data management.”
Zavettieri also highlighted the importance of establishing priority for the implementation of SFTR. He said: “Give priority to the needs of funding, in implementing SFTR, it’s crucial in order to provide liquidity to the bank in the short and medium period.”
“We have also to consider the importance of securities financing transactions to manage the liquidity coverage ratio and net stable funding ratios (NSFR) to be compliant with the regulations.”
He continued: “Considering the fact that in our case the implementation project of reporting securities financing transactions isn’t yet in place, from my point of view could be a good idea to start the implementation of the reporting beginning from electronic and bilateral repos for the reasons above. Securities lending and structured repos could follow if we will not ready in time.”
Zavettieri added: “It could be appropriate investing resources in a reconciliation tool between all the procedures used for securities financing transactions in particular for matching the transactions starting from the position keeping up with other tools.”
Next regulation article →
UK Government Brexit withdrawal agreement provides ‘sensible period’ for UK firms
UK Government Brexit withdrawal agreement provides ‘sensible period’ for UK firms
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
