The Depository Trust & Clearing Corporation (DTCC), the premier post-trade market infrastructure for the global financial services industry, today announced new partnerships with Broadridge, FIS Global, Murex, RegTek.Solutions and SimCorp to further support our mutual clients with forthcoming Securities Financing Transactions Regulation (SFTR) obligations, which are anticipated to take effect in Q1 2020.
The firms will efficiently link their SFTR solutions to DTCC’s GTR leveraging DTCC’s open architecture, thereby allowing market participants to benefit from straight-through reporting workflows and lowering the cost of implementation. GTR’s Partner Program includes a network of 150 service providers, who provide automated solutions from trade capture to SFTR reporting leveraging ISO 20022 standards and delivering straight-through capabilities and increased value to clients.
The announcement follows a paper from DTCC and The Field Effect, which reveals that transaction reporting for securities financing trades may create five times as many reports as trades when the regulation takes effect, placing increased operational demands on firms. With SFTR likely to be adopted across multiple G20 jurisdictions as part of a Financial Stability Board (FSB) mandate, GTR’s new technology platform is well-placed to meet these demands. DTCC recently conducted a complete re-architecture of its APAC trade repository, bringing improved usability, reduced complexity and increased transparency to clients and partners.
Chris Childs, President & CEO, DTCC Deriv/SERV, said, “We’re excited to be working with Broadridge, FIS Global, Murex, RegTek.Solutions and SimCorp - key providers who automate different aspects of the securities lending and repo market. These strategic collaborations demonstrate our interest in continuing to deliver increased value to clients who need to meet SFTR mandates, while reaffirming DTCC’s reach as a trade repository and strength as an industry utility within the financial ecosystem. We look forward to helping the industry prepare for SFTR.”
Hugh Daly, MA General Manager at Broadridge, said, “Our customers have been navigating a succession of mandatory trade and transaction reporting regulations, from Dodd-Frank in the US and EMIR in Europe, to others in Canada and Asia Pacific. We have responded by working closely with DTCC to provide timely connectivity to their GTR, enabling firms to meet their obligations. It is natural to further strengthen that relationship to address SFTR, and our track record of delivering together with DTCC against fixed regulatory deadlines will prove invaluable in the coming months as we add securities financing transactions to our strategic trade and transaction reporting capability.”
David Lewis, Senior Director at FIS Global, said, “FIS Global is pleased to be working with DTCC, delivering SFTR data direct from our trading systems, Global One and Apex Securities Finance, into their GTR, allowing our mutual clients the most cost effective straight through solution available. FIS Global’s approach to SFTR, and for the subsequent implementations to be rolled out by other National Competent Authorities (NCAs), is to manage and deliver data direct from the books and records systems of the client, removing the need for additional dependencies and costs.”
Maroun Edde, Murex Group CEO, said, “We have been working with DTCC, since 2012, to help our client base around the globe meet their derivatives reporting obligations for a wide range of regulations, including Dodd-Frank, EMIR and others outlined under G20 rules. Building on this past success, we are pleased to be collaborating with DTCC to provide Murex clients with the connectivity needed to comply with the demands of SFTR. By connecting our MX.3 platform, which centralizes trades and data across an organization, with DTCC’s GTR, our clients will be able to streamline the reporting process and respond efficiently to this latest regulatory obligation.”
Brian Lynch, CEO of RegTek.Solutions, said, “Our products are backed by an SLA to stay up to date with the latest global regulatory changes. Working with DTCC is crucial for us to meet this commitment with mutual clients, and we are delighted to continue our collaboration around the SFTR challenge. The data remediation lift is huge and as we wait for the technical standards to be approved firms should get themselves prepared - we are ready to help them.”
Carsten Kunkel, Head of Regulatory Center of Excellence at SimCorp, said, “Based on our Regulatory Center of Excellence, we continue to provide our global client base with both timely and efficient regulatory compliance solutions. This includes SFTR, where we are thrilled to support DTCC’s GTR to enable our clients to benefit from early access to DTCC's solution.”
With this announcement, Broadridge, FIS Global, Murex, RegTek.Solutions and SimCorp join EquiLend, IHS Markit, Pirum and Trax as partners linking to DTCC’s GTR service in support of SFTR requirements.
DTCC intends to apply 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).