Regulatory reporting startup Cappitech will be integrate its solution into IHS Markit in new deal to support Securities Financing Transactions Regulation (SFTR) compliance.
The combined power of the two companies will establish a single service to meet SFTR trade reporting needs which boasts automated and streamlined transaction reporting to trade repositories for all securities finance instruments.
In addition to this, the platform will offer ‘out-of-the-box’ MiFID II reporting for other instruments to be covered when SFTR goes live.
SFTR covers transaction reporting, disclosure obligations and collateral reuse obligations. The regulation will be in full effect in April 2020 and will require firms to report 155 data fields daily, including unique transaction identifier (UTI), legal entity identifier (LEI) and master agreement for each trade.
Clients leveraging the joint Cappitech and IHS solution will be gain a single solution to handle all of this from data aggregation, validation, enrichment, and normalisation, through to reconciliation and UTI sharing prior to trade repository reporting, the claim.
IHS Markit combines information, analytics, and expertise to develop solutions for the business, finance, and government industries. Its services include tools for MiFID II, KYC, cybersecurity, mobile networks, blockchain and connected cars.
Since 2017, the company has worked with partners, including financial institution software builder Pirum Systems, to develop its SFTR reporting solution. Its goal is to streamline trade reporting to repositories for all securities finance transactions, including repo, securities and commodities loans, prime brokerage, and others.
Cappitech CEO and Founder Ronen Kertis said, “We’re delighted to be partnering with IHS Markit to power their industry-leading SFTR solution. SFTR reporting is a natural extension of our platform, which already covers the majority of transaction reporting requirements globally.
“Our mission at Cappitech is to ease the regulatory reporting burden by offering clients next-generation technology that allows them to both comply and gain a competitive advantage.”
Earlier in the year, Cappitech released a new insights tool for reporting processes, giving users access to actionable data and analytics to better gauge the quality of reports.
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