Securities Financing Transactions Regulation (SFTR)

CSS is your strategic SFTR support partner, with extensive knowledge of transaction reporting regulations under ESMA from EMIR under Article 9 and MiFID under Article 26, RTS 22.

The CSS T+1 regulatory transaction hub consolidates, validates and normalizes data, bringing you an automated end-to-end process. The CSS hub comes with several out-of-the-box standard APIs providing connectivity to portfolio system vendors and both REGIS-TR and DTCC.

CSS participates in the ICMA SFTR task force, which works to bring transparency to the market. CSS is a partner with both DTCC and REGIS-TR.

Scope

Who?

  • European Entities and their branches
  • European branches of non-European entities
  • Financial and non-financial firms are required to report
  • Both sides to a transaction report (if in scope)
  • Fund managers on behalf of their funds

What?

  • REPO
  • Buy-Sell Back
  • Margin Lending
  • Securities Lending & Borrowing
  • SFT reported under SFTR exempt from MiFIR

What data?

  • Up to 153 fields: 96 of them reconciled (62 to start, 34 after two years)
  • Two-sided reporting
  • Roughly estimated 40% is not easily available
  • UTI required
  • ISO20022 standards

When?

  • T+1 for Transactions
  • T+1 for collateral known at point of trade
  • S+1 for collateral at settlement 180-day rules for back-book trades at regulation go-live
  • 5+ years of record keeping

How?

  • Transaction level (Repo, SL, BSB Position Level Margin lending)
  • Life-cycle events (Collateral including Re-use, modification to open positions)
  • 32 report/action combinations
  • Delegation possible (forced delegation for small non-FC)
  • Mandatory reporting to TR

Our solution

Our strength is coping with change management over time, ensuring that you are compliant with changes from either ESMA or Trade Repository.

Semiannually, we host regulatory roundtables together with REGIS-TR, DTCC and other relevant market participants addressing changes around the regulation and data.

A huge challenge with SFTR is capturing and consolidating data in a timely manner prior to reporting. We integrate with trading platforms and data vendors to consolidate reportable data, and the regulatory transaction hub holds transaction data until it is complete to pass validation.

Furthermore, we provide look-up service for LEI validation, UTI generation and connectivity to FIRDS for getting ISIN.

The dashboard will provide you with an overview of pairing and matching.

The regulatory transaction hub can be installed onsite within your infrastructure or you can facilitate our SaaS solution out of Dublin.

The regulatory transaction hub supports third-party reporting for both external and internal clients as well as delegation’s transaction.

Find out more about our SFTR Solution

Find out more by contacting our sales team.

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