ISLA releases SFTR report modeller
28 November 2019 London
Image: Shutterstock
The International Securities Lending Association (ISLA) has launched a report modeller for the Securities Financing Transactions Regulation (SFTR), to help members meet new trade reporting obligations due in April 2020.
The modeller allows users to construct an example report to simulate the expected output of any securities lending transaction for any lifecycle event, ISLA noted.
This example report would be illustrated in the regulatory technical standards real-time format using the European Securities and Markets Authority’s (ESMA) latest validation rules (VR) standards.
The latest VR standards and XML schemas for SFTR were officially released on 31 October, but are understood to still be in the process of gaining ISO registration.
According to ISLA, the interactive nature of the spreadsheet for the modeller allows members to select one of their preordained trade scenarios, identifying their business model and trade type.
The logic within the modeller prompts users to systematically work through the report via data input or list-box selection.
ISLA explained that in-built governance will indicate if there are any population or formatting errors, prompting users to make the necessary amendments prior to completion.
Richard Colvill, ISLA SFTR project lead, commented: “We are pleased to be able to offer a solution that allows ISLA members the ability to produce a full range of sample reports and see the manifestation of the SFTR in ESMA’s recognised RTS format.”
“Feedback received to-date has been very positive and we hope this will be a useful tool to help our members deliver their project obligations,” Colvill added.
The EU's SFTR, the first phase of which is due to come into force in April 2020, will require financial institutions and other entities to report their securities financing transactions to a registered trade repository for the first time in a bid to increase market transparency and expose risks.
The modeller allows users to construct an example report to simulate the expected output of any securities lending transaction for any lifecycle event, ISLA noted.
This example report would be illustrated in the regulatory technical standards real-time format using the European Securities and Markets Authority’s (ESMA) latest validation rules (VR) standards.
The latest VR standards and XML schemas for SFTR were officially released on 31 October, but are understood to still be in the process of gaining ISO registration.
According to ISLA, the interactive nature of the spreadsheet for the modeller allows members to select one of their preordained trade scenarios, identifying their business model and trade type.
The logic within the modeller prompts users to systematically work through the report via data input or list-box selection.
ISLA explained that in-built governance will indicate if there are any population or formatting errors, prompting users to make the necessary amendments prior to completion.
Richard Colvill, ISLA SFTR project lead, commented: “We are pleased to be able to offer a solution that allows ISLA members the ability to produce a full range of sample reports and see the manifestation of the SFTR in ESMA’s recognised RTS format.”
“Feedback received to-date has been very positive and we hope this will be a useful tool to help our members deliver their project obligations,” Colvill added.
The EU's SFTR, the first phase of which is due to come into force in April 2020, will require financial institutions and other entities to report their securities financing transactions to a registered trade repository for the first time in a bid to increase market transparency and expose risks.
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