Danish investment management solutions provider Simcorp has gone live with its new SFTR cloud solution, in partnership with regulatory compliance specialist deltaconX. Forming part of Simcorp’s latest software release, the solution offers SFTR transaction reporting through the deltaconX regulatory platform.
With the first wave of SFTR reporting requirements coming into force in April next year, time is increasingly of the essence when it comes to reporting compliance for the buy-side – and with a hefty 155 fields of data to fill in, the post-trade reporting processes are no small task.
“While the reporting regime may be structurally similar to EMIR, the buy side cannot write off SFTR as just another EMIR,” warns Carsten Kunkel, Head of SimCorp’s Global Regulatory centre of Excellence. “Up to 40% of the data required is estimated to be difficult to source. Firms cannot afford to take a piecemeal approach and instead must look to consolidated operations and robust regulatory reporting, to tackle the sheer impact to business.”
The new Simcorp solution focuses on transparency and data control, with differentiators such as the flexibility to load third party data, such as tri-party agent collateral reports. The transactions are processed in SimCorp Dimension, the firm’s flagship front-to-back investment management system, and utilises the system’s Investment Book of Record (IBOR) to deliver automated daily report processes, validation of trade data against the regulatory rule set, and an overview of transactions across business processes. It also comes with a standardized integration to the deltaconX platform, to manage the flow of reporting to trade repositories.
Based on Software-as-a-Service technology, the launch is part of a wider strategic move by the Danish firm towards managed services, with a great focus on regulatory compliance and maintenance.
“The pace of regulations has not made it easy for firms to tackle the challenge of technological innovation. As a result, best-of-breed architectures and insufficient legacy systems continue to hamper investment firms’ ability to respond to the challenges of regulatory reporting,” says Gernot Schmidt, Product Manager for Regulatory Solutions at SimCorp. “SimCorp’s clients are ahead of this curve, optimizing operational and reporting processes by means of one highly automated and consolidated platform.”