The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced new efforts to further streamline and enhance its global trade reporting capabilities as market participants prepare for the upcoming reporting requirements contained within the Securities Financing Transaction Regulation (SFTR), which are expected to begin to take effect in late 2019.
SFTR will require firms which are subject to SFTR to report securities financing transactions including repurchase agreements, securities lending and margin lending trades to a registered Trade Repository.
By collaborating with EquiLend & Trax and IHS Markit & Pirum, DTCC will be able to offer greater levels of straight through processing, with seamless links to mutual clients’ existing technology, for a quick-to-implement and cost-effective SFTR reporting solution. Each of the firms will build to DTCC’s GTR and enrich data to SFTR reporting standards. This builds upon DTCC’s existing vendor relationships, where over 150 firms already connect their technology solutions to GTR via DTCC’s established Partner Program.
EquiLend & Trax’s comprehensive SFTR service will connect to GTR via Trax’s reporting hub for all SFTR-eligible asset classes. “Straight-through processing is key for an SFTR solution. From our point of trade through to data enrichment and matching services, this should significantly enhance onward reporting to GTR,” said Brian Lamb, CEO of EquiLend. Chris Smith, Head of Trax, added: “Given the complexities and manual nature in the securities financing trade lifecycle, key industry platforms must come together to provide holistic solutions. On behalf of EquiLend and Trax, we are excited to partner with DTCC to help mutual clients with their new regulatory obligations under SFTR.”
IHS Markit and Pirum’s fully integrated service offering will also connect to GTR via IHS Markit, providing data management and reconciliation capabilities and covering all SFTR reportable transactions. Pierre Khemdoudi, Managing Director and Global Co-Head of Equities, Data and Analytics at business information provider IHS Markit, said, “We are thrilled to expand our strong relationship with DTCC in the regulatory space for SFTR coverage. Together, our deep expertise in data management, securities finance and repo markets will benefit a robust network of clients.” Rajen Sheth, CEO of Pirum, added, “It has been clear that the service provider community needs to work collaboratively to deliver an effective solution for SFTR. This collaboration with DTCC extends that network to provide real value to mutual clients”.
This announcement comes on the heels of DTCC’s recent efforts to further improve and enhance GTR, with the successful achievement of a complete re-architecture of its European Trade Repository. Today, GTR processes over 14 billion messages per year on 40 million open trades a week covering 100,000 entities.
Chris Childs, President & CEO, DTCC Deriv/SERV, added, “We are pleased to be working with four leaders in the securities financing space. Our re-architecture, coupled with these strategic collaborations, will position us well to support our mutual clients’ SFTR requirements. The industry has invested heavily in establishing an infrastructure for OTC derivatives trade reporting and this is an example of identifying opportunities to expand the use of the existing platform for SFTR. We look forward to building upon our past efforts and in delivering a compelling solution that continues to define GTR as the world’s trade reporting solution of choice.”
DTCC intends to submit an application to become a registered Trade Repository under SFTR once relevant technical standards governing the application process are put in place by the European Securities and Markets Authority (ESMA).