SmartStream introduces SFTR reference data service
11 September 2019 London
Image: Shutterstock
SmartStream’s Reference Data Utility (RDU), has launched a cloud-based security reference data service to assist firms in meeting the EU’s Securities Financing Transactions Regulation (SFTR) requirements.
As of April 2020, SFTR will require banks and investment firms to shine a light on all aspects of their securities finance business by reporting transactions to a registered trade repository.
SmartStream highlighted that gathering the data required to comply with SFTR could become a headache for many as each transaction reports must include the details of the transaction, the counterparties and the specifics of the security involved.
According to SmartStream, in order to provide an accurate, comprehensive and easy-to-access means of obtaining the information, the SmartStream RDU acquires instrument reference data from a range of industry sources.
SmartStream RDU will then normalise, enrich and map this information into the format required by SFTR and make it available via a cloud-based application programming interface.
The data is updated daily and stored for five years to allow for back-loading, corrections and effective audit controls.
Peter Moss, CEO of SmartStream RDU, commented: “Although the European Securities and Markets Authority’s reporting guidelines have yet to be fully finalised, proactive firms will now be planning carefully how best to meet SFTR reporting obligations.”
“SFTR transaction reports are complex and most firms have been focusing on capturing the details of the transaction, creating a Unique Transaction Identifier and ensuring that they have the necessary counterparty details already. Our goal is to remove the complexity from sourcing high-quality reference data and enabling firms to focus on managing their business.”
As of April 2020, SFTR will require banks and investment firms to shine a light on all aspects of their securities finance business by reporting transactions to a registered trade repository.
SmartStream highlighted that gathering the data required to comply with SFTR could become a headache for many as each transaction reports must include the details of the transaction, the counterparties and the specifics of the security involved.
According to SmartStream, in order to provide an accurate, comprehensive and easy-to-access means of obtaining the information, the SmartStream RDU acquires instrument reference data from a range of industry sources.
SmartStream RDU will then normalise, enrich and map this information into the format required by SFTR and make it available via a cloud-based application programming interface.
The data is updated daily and stored for five years to allow for back-loading, corrections and effective audit controls.
Peter Moss, CEO of SmartStream RDU, commented: “Although the European Securities and Markets Authority’s reporting guidelines have yet to be fully finalised, proactive firms will now be planning carefully how best to meet SFTR reporting obligations.”
“SFTR transaction reports are complex and most firms have been focusing on capturing the details of the transaction, creating a Unique Transaction Identifier and ensuring that they have the necessary counterparty details already. Our goal is to remove the complexity from sourcing high-quality reference data and enabling firms to focus on managing their business.”
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