About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

UnaVista’s Closure of SFTR Service Adds Complexity to Reporting Landscape

Subscribe to our newsletter

The recent decision by London Stock Exchange Group’s UnaVista to close its SFTR reporting service will force clients to decide on selection and implementation of alternative arrangements for meeting their obligations under the EU’s Securities Finance Transaction Reporting regulation. UnaVista late last month said it would cease operations of its SFTR in January 2022, leaving customers just five months to seek alternative arrangements.

Operators in the space have been quick to respond. DTCC, whose GTR Europe operates a transaction repository (TR) for SFTR, is reportedly working with UnaVista clients to help ensure a smooth transition.

“Clients will be forced to fragment their reporting, rather than consolidating completely. It’s almost the opposite of what everyone has been trying to achieve,” says Phil Flood, Business Development Director, Regulatory and STP Services at Gresham Technologies, which specialises in providing solutions for data integrity. “With firms trying to focus on completeness and accuracy still in a remediation phase after the final go-live in January, there is now another project to move the trade repository and yet another destination to reconcile regulatory activity.”

In a blog post, IHS Markit’s Director of Marketing, Trudy Namer, suggests the UnaVista move will have “a very real impact on those obligated to report.” The regulatory reporting space is fast-moving, she points out, with multiple new regulations being introduced every year and frequent iterations to current regulations being made.

“Simply looking at the next 12 months, there are several regulatory changes coming into play, including the final phase of MAS OTC Derivative Reporting coming in October 2021, SEC go-live in November 2021, SFTR ISO changes in Jan 2022, the CFTC Re-Write in May 2022, Canada Re-Write in August 2022 as well as EMIR Refit in 2023. Compliance managers are already heavily tasked with maintaining the integrity of their day-to-day reporting while navigating the constant changes in the regulations; so curve-balls like a TR exiting adds to the already enormous burden.”

The UnaVista move, which follows other withdrawals from the marketplace, also illustrates the difficulty in operating a viable business in the regulatory reporting space. The past two years have witnessed the closure of the CME Group’s regulatory reporting facilities in Europe and Australia, as well as the sell-off of Deutsche Boerse’s Regulatory Reporting Hub to MarketAxxess.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Adding value and improving efficiencies in sanctions screening

Sanctions have been headline news this year. They are growing in number, sanctions lists are changing on a daily basis, and there can be conflict between sanctions issued by different jurisdictions – the whole calling for financial institutions to optimise sanctions screening to reduce risk and avoid potentially punitive penalties of non-compliance. This webinar will...

BLOG

SmartStream Combines Air, RDU to Offer Comprehensive Transaction Reporting for MiFID II

SmartStream Technologies has combined its SmartStream RDU reference data utility with its SmartStream Air (Artificial Intelligence Reconciliations) solution to create a new offering that provides regulated entities with comprehensive reporting capabilities for MiFID II. The new solution – Transaction Reporting Reconciliation and Reporting Decision Control – aims to address regulators’ growing requirement for completeness and accuracy...

EVENT

TradingTech Summit London

Now in its 11th year the TradingTech Summit London brings together the European trading technology capital markets industry, to explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility.

GUIDE

ESG Data Handbook 2022

The ESG landscape is changing faster than anyone could have imagined even five years ago. With tens of trillions of dollars expected to have been committed to sustainable assets by the end of the decade, it’s never been more important for financial institutions of all sizes to stay abreast of changes in the ESG data...