SIX Launches Fully Delegated SFTR Reporting for Swiss Repo Market

The Swiss Stock Exchange’s SFTR reporting services is now live in synchronisation with the introduction of the SFTR regulation. Over 170 clients stand to benefit from this offering. The Swiss Stock Exchange automates the way it provides Unique Transaction Identifiers (UTI) creating a scale offering featuring SFTR-compliant and fully delegated reporting. For the delegated reporting, SIX has partnered with UnaVista, London Stock Exchange Group’s trade repository.

As SFTR is a European regulation, SIX partnered with Comyno, a consultancy firm based in Frankfurt. 

SmartSearch Launches US Operations

UK-based anti-money-laundering (AML) firm SmartSearch on July 14 launched operations in the US, following a period of sustained growth. According to CEO John Dobson: “We have developed a bespoke product for the American market so that US firms using SmartSearch have the same absolute confidence as those in the UK, that their AML checks are up-to-date and fully compliant with relevant legislation at all times.

The firm’s KYC and AML platform enables clients to perform full electronic ID verification and screening in just two seconds, and provides ongoing monitoring to alert users to any change in a client’s status. The platform has also recently incorporated biometric facial recognition for additional security, and promises “well-advanced plans” for further enhancements.

TriOptima Extends Collaboration with DTCC on SFTR

TriOptima, an infrastructure service that helps to lower costs and to mitigate risk in OTC derivatives markets, has extended data connectivity between The Depository Trust & Clearing Corporation (DTCC) Global Trade Repository (GTR) service and TriOptima’s triResolve platform to help market participants validate their reported securities financing transactions as they prepare for SFTR compliance. Through the initiative, firms are able to compare and align DTCC GTR trade records with their reported data fields in triResolve, allowing them to identify and address any discrepancies, as well as amend reporting faster.

Under SFTR, set to come into effect for phase-one and two reporting on July 13, market participants are fully responsible for the accuracy of information when reporting their repo and securities lending transactions to trade repositories either directly, or through a delegated third party.

FINRA Fines Morgan Stanley for Incorrect Trading Data

The Financial Industry Regulatory Authority (FINRA) has fined Morgan Stanley $875,000 for failing to provide accurate trade data (also known as “blue sheets”) in an automated format when requested to do so by FINRA and the SEC. The regulator found that the bank had experienced significant failures in its blue sheet systems between 2014 and 2017, and made numerous deficient or inaccurate submissions. Morgan Stanley, which has not admitted or denied the charges, claims that human error was the cause of the inaccurate submissions.

Dutch Banks to Share Data in Fight Against Financial Crime

Dutch banks ING, ABN Amro, and Rabobank plan to join forces to share transaction data in a bid to reduce money laundering. Along with Volksbank and Triodos Bank they intend to launch a new agency to monitor all transactions, making it easier to detect unusual patterns. According to Dutch banking association NVB, around €16 billion laundered through the Netherlands every year.

TRAction Fintech Expands Alliance with UnaVista on Regulatory Reporting

Specialist regulatory reporting firm TRAction Fintech has expanded its existing collaborative partnership with UnaVista, the regulatory reporting platform of the London Stock Exchange (LSE), in a bid to simplify MiFID II, EMIR and SFTR reporting for FX and CFD brokers. The alliance is designed to enable easier integration of trading platforms with regulatory reporting systems, so that compliance can be achieved more efficiently. Quinn Perrott, co-CEO of TRAction Fintech comments, “Having used multiple different trade repositories we have a variety of experience and consider that UnaVista are of the highest standard in the market for usability and customer service. They combine the backing and foundation of London Stock Exchange Group with the agility and hands on approach of a fintech start-up.”

Treasury Announces Plans to Amend Benchmarks Regulation

The UK Government has confirmed plans to introduce new legislation to amend the Benchmarks Regulation to give the FCA more power to manage and direct an orderly wind-down of critical benchmarks such as LIBOR. The new powers proposed will be available where the FCA has found that a critical benchmark is not representative of the market it seeks to measure and representativeness will not be restored.

Mid Atlantic Capital Chooses SS&C Technologies for FINRA CAT Reporting

Mid Atlantic Capital Group has chosen SS&C to automate its FINRA Consolidated Audit Trail (CAT) reporting obligations. The Securities and Exchange Commission will require all broker-dealers to report equities and options transaction data to FINRA CAT at the end of the month.  SS&C will monitor, submit and correct transactional data on behalf of Mid Atlantic Capital as part of its full-service offering. The SS&C CAT Reporting Portal is a secure, web-based service that aggregates and enriches broker data across broker’s platforms and translates it into FINRA-compliant CAT reports. The Portal also provides an interactive front-end to enable customers to manage exceptions.

FINRA CAT certified more than 70 firms before the June 8^th certification deadline with SS&C as the CAT Reporting Agent.

SEC FinHub Plans Virtual RegTech Meetup

The US Securities and Exchange Commission (SEC) is planning a series of virtual peer-to-peer meetups through its Strategic Hub for Innovation and Financial Technology (FinHub), with a focus on engaging the industry to inform regulatory approach. The first theme will be RegTech, with a meeting planned for 6 July, 2020. Anyone currently working on RegTech solutions or implementations is encouraged to attend, and places can be booked here.

Commerzbank Fined £37.9m for Money Laundering Failures

The UK’s Financial Conduct Authority (FCA) has issued its second-largest fine ever to Commerzbank London due to put anti-money laundering failures 2012 and 2017, which the regulator concluded had “created significant risk”. Although the FCA raised concerns three times during the period, the bank still failed to “take reasonable and effective steps to fix them.”

“Commerzbank London’s failings over several years created a significant risk that financial and other crime might be undetected,” said Mark Steward, the FCA’s executive director of enforcement and market oversight. “Firms should recognise that AML controls are vitally important to the integrity of the UK financial system.”

The bank agreed to resolve the dispute at an early stage, which led to a 30% reduction in the fine.