SimCorp's cloud-based SFTR reporting solution goes live
04 November 2019 London
Image: Shutterstock
SimCorp, in collaboration with regulatory compliance platform deltaconX, has launched a cloud-based Securities Financing Transactions Regulation (SFTR) reporting solution for buy-side clients, ahead of the regulation’s April 2020 go-live.
According to SimCorp, the solution offers an end-to-end reporting service for SFTR via SimCorp Dimension, the firm’s flagship platform, with a standardised integration to deltaconX, to manage the flow of reporting to trade repositories, with software-as-a-service technology to promote efficient and fast onboarding.
In a statement on the launch, SimCorp said that by virtue of being a cloud-based solution the platform will benefit from continual monitoring and seamless upgrades.
“In addition, its integration with SimCorp Dimension’s Investment Book of Record delivers the buy side highly automated daily report processes, complete validation of trade data against the regulatory rule set and a consistent overview across all business processes,” the statement continued.
The launch also comes as part of SimCorp’s drive towards managed services, which will see it take greater responsibility for its clients' regulatory compliance and maintenance.
SimCorp explained that the solution is a response to its discussions with buy-side clients, that revealed that data continues to form the critical concern, both in its availability and in alignment with counterparties.
It also noted that the oversight required for delegated reporting, “bears an altogether heavier burden on resources”.
The launch also comes as part of SimCorp’s drive towards managed services, which will see it take greater responsibility for its clients' regulatory compliance and maintenance.
Carsten Kunkel, head of SimCorp’s global regulatory centre of excellence, was responsible for creating the new SFTR solution, warned that while the reporting regime may be structurally similar to EMIR, the buy side cannot write-off SFTR as just more of the same, as “up to 40 percent of the data required is estimated to be difficult to source”.
“Firms cannot afford to take a piecemeal approach and instead must look to consolidated operations and robust regulatory reporting, to tackle the sheer impact to the business,” he continued. “SimCorp’s solution provides unparalleled transparency and control of the data that will be reported, including flexibility to load third-party data, such as triparty agent collateral reports.”
SFTR continues on from the European Commission’s European Market Infrastructure Regulation (EMIR) and Markets in Financial Instruments Regulation to improve transparency in financial markets through transaction reporting.
This latest rules framework, which comes in the wake of the 2008 financial crisis, will go further than its predecessors in terms of the level of granularity of transaction data required, with 155 fields of data to be reported on each securities finance transaction, via an ISO 20022 format.
According to SimCorp, the solution offers an end-to-end reporting service for SFTR via SimCorp Dimension, the firm’s flagship platform, with a standardised integration to deltaconX, to manage the flow of reporting to trade repositories, with software-as-a-service technology to promote efficient and fast onboarding.
In a statement on the launch, SimCorp said that by virtue of being a cloud-based solution the platform will benefit from continual monitoring and seamless upgrades.
“In addition, its integration with SimCorp Dimension’s Investment Book of Record delivers the buy side highly automated daily report processes, complete validation of trade data against the regulatory rule set and a consistent overview across all business processes,” the statement continued.
The launch also comes as part of SimCorp’s drive towards managed services, which will see it take greater responsibility for its clients' regulatory compliance and maintenance.
SimCorp explained that the solution is a response to its discussions with buy-side clients, that revealed that data continues to form the critical concern, both in its availability and in alignment with counterparties.
It also noted that the oversight required for delegated reporting, “bears an altogether heavier burden on resources”.
The launch also comes as part of SimCorp’s drive towards managed services, which will see it take greater responsibility for its clients' regulatory compliance and maintenance.
Carsten Kunkel, head of SimCorp’s global regulatory centre of excellence, was responsible for creating the new SFTR solution, warned that while the reporting regime may be structurally similar to EMIR, the buy side cannot write-off SFTR as just more of the same, as “up to 40 percent of the data required is estimated to be difficult to source”.
“Firms cannot afford to take a piecemeal approach and instead must look to consolidated operations and robust regulatory reporting, to tackle the sheer impact to the business,” he continued. “SimCorp’s solution provides unparalleled transparency and control of the data that will be reported, including flexibility to load third-party data, such as triparty agent collateral reports.”
SFTR continues on from the European Commission’s European Market Infrastructure Regulation (EMIR) and Markets in Financial Instruments Regulation to improve transparency in financial markets through transaction reporting.
This latest rules framework, which comes in the wake of the 2008 financial crisis, will go further than its predecessors in terms of the level of granularity of transaction data required, with 155 fields of data to be reported on each securities finance transaction, via an ISO 20022 format.
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