Pirum, the London based, post-trade services and securities financing automation vendor and the Cappitech unit of S&P Global Market Intelligence have extended the functionality of their joint Securities Financing Transaction Reporting (SFTR) solution to address the upcoming SEC rule 10c-1a, which covers the reporting of securities lending transactions. The two originally partnered in 2021 to help clients address the European Securities Markets Association’s (ESMA) SFTR, which applies to transactions including repos, reverse repos, securities and commodities lending, and buy-sell back / sell-buy back transactions within the European Union.
The SEC’s new rule 10c-1a aims to improve transparency of the securities lending market in the United States. It is being implemented by FINRA and will come into force for covered entities in January 2026. See the full text of the rule from FINRA here.
The S&P/Pirum rule 10c-1a solution combines Cappitech’s data validation, event creation and regulatory connectivity, with Pirum’s Unique Trade Identifier (UTI) generation and reconciliation abilities, to form an efficient and streamlined reporting solution.
The firms began collaborating on this project when the SEC first proposed 10c-1a in November 2021. They have also worked closely with their clients and industry associations, as well as engaged with regulators, to arrive at a detailed and holistic understanding of the incoming rules and requirements. Today, the joint SFTR solution processes more than 9 million records a day and averages a 97+% ACK rate for submissions to trade repositories.
Extensive conversations with industry participants made it clear to Pirum and Cappitech that there was significant appetite for a solution that could avoid bifurcating current processes, enable faster time to market, leverage existing SFTR connectivity and data flows, and facilitate easier integration.
According to Struan Lloyd, Managing Director and head of S&P Global Market Intelligence Cappitech, “Building on the success of our joint collaboration in SFTR, the solution will be enhanced to cover the specific requirements and workflows required by the new regulation.”.”
Phil Morgan, CEO at Pirum, says: “By enhancing Pirum RegConnect to deliver a robust and reliable 10c-1a solution, Pirum and S&P Global Market Intelligence Cappitech have taken another leap together on our journey to keep our clients on the right side of ever-changing regulatory requirements. Having previously built and rolled out a reporting solution that successfully handles the complexity of SFTR reporting, extending it to cover the less onerous, but equally important 10c-1a requirements was a logical evolution of the existing product.”
IHS Markit acquired Cappitech in January 2021 and was merged into S&P Global in February 2022.
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