Delta Capita is collaborating with the Depository Trust & Clearing Corporation (DTCC) to help companies meet trade reporting obligations of Securities Financing Transactions Regulation (SFTR).
The regulation enters the market on April 2020 and will require financial and non-financial counterparties to report their SFTs to an approved EU trade repository.
Delta Capita is a consultancy helping financial institutions meet compliance with regulatory obligations. The company is leveraging its banking consortium to build a standardised SFTR industry test pack and through the collaboration it will make the pack available to DTCC to test its own SFTR matching and reporting service prior to launch.
Clients of DTTC’s Global Trade Repository (GTR) service for SFTR will benefit from knowing the service has been tested, lowering their needs of testing.
Additionally, DTCC will make its data transformation services available to support the creation of trade repository ready SFTR reports.
Delta Capita head of securities finance practice David Field said, “Our test pack will provide full traceability to the European Commission’s regulatory technical standards (RTS), the European Securities and Markets Authority (ESMA)’s guidance, and best practices across repo, sell/buy-back and stock borrow/loan.
“It will provide users with the test data, test instructions and expected results to conduct their user acceptance testing (UAT), and to test with their counterparts, trading venues, service providers, central counterparties (CCPs), tri-party agents and trade repositories. Consortium members will be able to benchmark their testing run and pass rates to highlight any areas for review and remediation.”
DTCC is a post-trade market infrastructure for the global financial services industry. It provides an automated, centralised and standardised way of processing of financial transactions, mitigating risk, increasing transparency and boosting efficiency.
Earlier in the year, the company partnered with three RegTech startups to help them meet SFTR compliance.
SFTR’s deadline is not far off, and companies are getting themselves ready. Earlier in the month, Finastra released a tool designed to help companies meet their new reporting requirements.
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