SFTR day one data quality will not be perfect, expert says
10 May 2019 London
Image: Shutterstock
On day one of the Securities Financing Transactions Regulation (SFTR) reporting, firms will not have perfect data quality and should assume the worst about transaction reporting, according to REGIS-TR’s Jo Hide.
Hide, speaking at IHS Markit’s SFTR event in London, said: “A lot of people that I speak to have a lot of high expectations around the quality of their data can achieve early on.”
“Frankly that won't happen day one, week one, month one or maybe even year one because it is a long process. The date of 11 April isn't the end it is the beginning of when things will really start happening.”
What regulators are looking for comes in waves, Hide suggested that it depends on how well things are going. She said: “They know what they expect to see and they will be getting data from us from day one.”
Hide explained: “If the regulators don’t see what they expect to see then they will call you. Firms that weren't reporting for the European Market Infrastructure Regulation got a call within the first couple of weeks.”
She noted that firms should assume the worst about transaction reporting because “if you don’t then it is probably going to cost you a lot of money in investigative fees”.
“It is worth having a negative feeling about it because you cannot assume it’s all alright. You will be expected to look every three months to take a section of your data and confirm that it is right.”
According to Hide, it is better to have a plan on day one because the regulator will be asking what that plan is, what the problems are and the timescale for correcting them.
Hide, speaking at IHS Markit’s SFTR event in London, said: “A lot of people that I speak to have a lot of high expectations around the quality of their data can achieve early on.”
“Frankly that won't happen day one, week one, month one or maybe even year one because it is a long process. The date of 11 April isn't the end it is the beginning of when things will really start happening.”
What regulators are looking for comes in waves, Hide suggested that it depends on how well things are going. She said: “They know what they expect to see and they will be getting data from us from day one.”
Hide explained: “If the regulators don’t see what they expect to see then they will call you. Firms that weren't reporting for the European Market Infrastructure Regulation got a call within the first couple of weeks.”
She noted that firms should assume the worst about transaction reporting because “if you don’t then it is probably going to cost you a lot of money in investigative fees”.
“It is worth having a negative feeling about it because you cannot assume it’s all alright. You will be expected to look every three months to take a section of your data and confirm that it is right.”
According to Hide, it is better to have a plan on day one because the regulator will be asking what that plan is, what the problems are and the timescale for correcting them.
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