Pirum enhances CCP Gateway for SFTR reporting
13 May 2020 London
Image: leolintang/Shutterstock.com
Pirum Systems has completed the rollout of its Securities Financing Transactions Regulation (SFTR)-compliant novation processing for its CCP Gateway via Eurex Clearing, a global central counterparty (CCP) owned by Deutsche Boerse.
Pirum has collaborated with Eurex Clearing since 2012 though its CCP Gateway, which enables bilaterally traded business to be sent to a CCP for refinancing by leveraging post-trade automation connectivity to access central clearing platforms.
The partnership also allows for matching of new trades with counterparties, followed by novation with Eurex Clearing, along with matched cancellation of new trades and matched rate changes fed through to Eurex Clearing.
According to Pirum, the CCP Gateway significantly reduces the effort for firms to establish connectivity to Eurex Clearing, along with automating the day-to-day activity with the CCP.
As part of the final phase of the rollout, Pirum has processed the first SFT-compliant securities lending trades through the platform.
Using the augmented data, Pirum has novated the first trades in preparations for SFTR reporting and says the on-going rollout of the CCP Gateway capabilities are well equipped for the SFTR go-live date, which has been delayed until July.
“There are a number of considerations for firms looking to clear securities lending trades, particularly around matching and novating the trade and managing all the lifecycle events whilst the position remains open,” explains Robert Frost, head of product development at Pirum.
This, coupled with the specific SFTR requirements around novation and the related data fields, resulted in a significant project to ensure clients using our CCP Gateway remain compliant.”
Jonathan Lombardo, senior vice president, fixed income sales and derivatives at Eurex Clearing, adds: “SFTR has been one of the most significant changes specific to the securities lending market.
“As a key market infrastructure provider, it was critical that we were aligned with all vendor solutions that directly impact our client base.”
Pirum has collaborated with Eurex Clearing since 2012 though its CCP Gateway, which enables bilaterally traded business to be sent to a CCP for refinancing by leveraging post-trade automation connectivity to access central clearing platforms.
The partnership also allows for matching of new trades with counterparties, followed by novation with Eurex Clearing, along with matched cancellation of new trades and matched rate changes fed through to Eurex Clearing.
According to Pirum, the CCP Gateway significantly reduces the effort for firms to establish connectivity to Eurex Clearing, along with automating the day-to-day activity with the CCP.
As part of the final phase of the rollout, Pirum has processed the first SFT-compliant securities lending trades through the platform.
Using the augmented data, Pirum has novated the first trades in preparations for SFTR reporting and says the on-going rollout of the CCP Gateway capabilities are well equipped for the SFTR go-live date, which has been delayed until July.
“There are a number of considerations for firms looking to clear securities lending trades, particularly around matching and novating the trade and managing all the lifecycle events whilst the position remains open,” explains Robert Frost, head of product development at Pirum.
This, coupled with the specific SFTR requirements around novation and the related data fields, resulted in a significant project to ensure clients using our CCP Gateway remain compliant.”
Jonathan Lombardo, senior vice president, fixed income sales and derivatives at Eurex Clearing, adds: “SFTR has been one of the most significant changes specific to the securities lending market.
“As a key market infrastructure provider, it was critical that we were aligned with all vendor solutions that directly impact our client base.”
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