DTCC’S SFTR solution sees 80 percent user growth
24 June 2020 London
Image: optimarc/Shutterstock.com
The Depository Trust and Clearing Corporation (DTCC) has seen an 80 percent increase in the number of clients signed-up for its Securities Financing Transactions Regulation (SFTR) service via its Global Trade Repository (GTR) since the beginning of 2020.
The growth means that the post-trade infrastructure provider now has 250 clients committed to using GTR to meet their SFTR reporting obligations.
SFTR will take effect for banks, broker-dealers, agent lenders, central counterparties and central securities depository on 13 July, followed by buy-side entities on 11 October, and finally with non-financial counterparties on 11 January 2021.
DTCC’s GTR service supports all product types that need to be reported under the SFTR, including repo and reverse repo, securities and commodities lending and borrowing, sell/buy-back, buy/sell-back and margin lending and borrowing.
Val Wotton, managing director, product development and strategy of repository and derivatives services at DTCC, says: “We are ready to help firms comply with the regulation on day one. While some technical issues remain, such as reconciliation processes and the reporting of lifecycle events, these can and will only be resolved when implementation begins.
“For buy-side firms subject to the regulation, we encourage them to act quickly to address any remaining reporting challenges and complete testing to ensure readiness for the October implementation date. With the majority of leading global banks and agent lenders on the SFTR service, we will continue to work closely with market participants and the wider GTR community as the regulation takes effect.”
Elsewhere, the DTCC notes that GTR has grown to dominate the over-the-counter (OTC) and exchange-traded derivatives market, serving approximately 80 percent of the global market.
GTR’s total client base stands at 5,294, with 67 percent of clients based in Europe, 21 percent in North America and 12 percent in Asia.
The GTR service also includes a report hub, which offers a customisable suite of pre- and post-reporting data and reconciliation capabilities designed to offer a flexible toolbox for buy-side and dealer firms of all sizes, DTCC says.
DTCC currently has 30 firms that have signed on to leverage the report hub service.
The growth means that the post-trade infrastructure provider now has 250 clients committed to using GTR to meet their SFTR reporting obligations.
SFTR will take effect for banks, broker-dealers, agent lenders, central counterparties and central securities depository on 13 July, followed by buy-side entities on 11 October, and finally with non-financial counterparties on 11 January 2021.
DTCC’s GTR service supports all product types that need to be reported under the SFTR, including repo and reverse repo, securities and commodities lending and borrowing, sell/buy-back, buy/sell-back and margin lending and borrowing.
Val Wotton, managing director, product development and strategy of repository and derivatives services at DTCC, says: “We are ready to help firms comply with the regulation on day one. While some technical issues remain, such as reconciliation processes and the reporting of lifecycle events, these can and will only be resolved when implementation begins.
“For buy-side firms subject to the regulation, we encourage them to act quickly to address any remaining reporting challenges and complete testing to ensure readiness for the October implementation date. With the majority of leading global banks and agent lenders on the SFTR service, we will continue to work closely with market participants and the wider GTR community as the regulation takes effect.”
Elsewhere, the DTCC notes that GTR has grown to dominate the over-the-counter (OTC) and exchange-traded derivatives market, serving approximately 80 percent of the global market.
GTR’s total client base stands at 5,294, with 67 percent of clients based in Europe, 21 percent in North America and 12 percent in Asia.
The GTR service also includes a report hub, which offers a customisable suite of pre- and post-reporting data and reconciliation capabilities designed to offer a flexible toolbox for buy-side and dealer firms of all sizes, DTCC says.
DTCC currently has 30 firms that have signed on to leverage the report hub service.
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