SimCorp is seeking to solve the data management issues of Securities Financing Transactions Regulation (SFTR) reporting with a cloud-based solution developed in partnership with regulatory compliance specialist deltaconX. The SFTR offering is included in SimCorp’s latest software release and provides transaction reporting through the deltaconX regulatory platform.
With the first wave of SFTR reporting requirements coming into force in April 2020, time is of the essence when it comes to reporting compliance for the buy-side – and with 155 fields of data to fill, data sourcing and post-trade reporting is no small task.
Carsten Kunkel, head of SimCorp’s Global Regulatory Centre of Excellence, says: “While the reporting regime may be structurally similar to EMIR, the buy-side cannot write off SFTR as just another EMIR. 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 impact of the regulation on business.”
The 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. Transactions are processed in SimCorp Dimension, the firm’s flagship investment management system, while the company’s Investment Book of Record (IBOR) is used for automated daily reporting, validation of trade data against the regulatory rule set, and an overview of transactions across business processes. The solution also comes with a standardised integration to the deltaconX platform, to manage the flow of reporting to trade repositories.
Based on Software-as-a-Service technology, the SFTR solution is part of a wider strategic move by SimCorp towards managed services with a focus on regulatory compliance and maintenance.