IHS Markit, a specialist in critical information, analytics and solutions, has partnered with six leading securities finance market participants as part of its ongoing effort with Pirum Systems to build a solution to address Securities Finance Transaction Regulation (SFTR) reporting requirements.
Joining IHS Markit as design partners for the SFTR reporting solution are BNY Mellon, Brown Brothers Harriman, Deutsche Bank Agency Lending, eSecLending, JP Morgan and Rabobank. Each member of the initial design group will contribute their requirements and market expertise to ensure the fully-hosted, end-to-end reporting framework suits the diverse needs of the securities lending and repo communities.
“We are always looking for efficient, cost-effective solutions to provide higher levels of automation to our clients. Working with IHS Markit will help us steer an industry-leading solution for streamlining SFTR reporting,” says James Day, managing director at BNY Mellon Markets.
Thomas Poppey, senior vice president at Brown Brothers Harriman, adds: “BBH is pleased to be working with IHS Markit given their proven track record in delivering thoughtful technology and data products. As a regulation with broad application, SFTR is featuring prominently in our client conversations and we look forward to contributing towards a comprehensive reporting solution that meets their needs.”
The IHS Markit SFTR reporting solution will ultimately enable market participants impacted by SFTR to report transactions through an interoperable, modular platform. These modules will assist in handling the complex data challenge posed by SFTR from data exchange, enrichment and warehousing – from reconciliation and reporting to approved trade repositories. Users will also be able to leverage this solution to comply with the reporting requirements mandated by MiFID II.
“There are real benefits to using a solution supported industry-wide to deal with the intricacies of SFTR reporting, which requires processing of over 150 reportable items,” says Patrick Moisy, head of liquidity and trading services at JP Morgan. “Our main objective is to simplify this complex reporting process for our clients and we expect this partnership to design the most effective solution possible.”
SFTR was enacted by the European Parliament in 2015 to provide greater transparency on cross-asset class lending, borrowing, repurchase agreements and sale/buy-back agreements among counterparties in the EU. The regulation will be phased in through 2019, and additional reconciliation requirements are under consideration for a later date.
“There is an industry-wide need for efficient reporting under SFTR, and we are pleased that we have such a large part of the global securities lending market on board as initial design partners,” says Pierre Khemdoudi, managing director of Securities Finance at IHS Markit. “This broad group of market participants will work closely with our securities finance experts, ensuring our SFTR solution delivers the technology and seamless workflow required to assist in meeting this regulatory obligation.”
Rajen Sheth (pictured), CEO at Pirum added, “It was clear from the start of our SFTR investigations that collaboration would be the key to delivering a comprehensive and cost-effective solution for the market. Forming our partnership with IHS Markit on this venture was the first part of the journey. We are now excited to join forces with our design partners and welcome the opportunity to work with them to deliver the SFTR solution.”
