SECURITIES FINANCE

EquiLend and Trax partner for SFTR solution

The two post-trade service providers will combine their capabilities in securities lending, reporting and market data to provide a joint SFTR solution.

By Joe Parsons joe.parsons@strategic-i.com September 20, 2017 9:40 AM GMT

EquiLend and Trax will jointly launch a front-to-back solution for mutual clients complying with the Securities Financing Transactions Regulation (SFTR).

The two post-trade service providers will combine their capabilities in securities lending, reporting and market data to ensure clients will be able to meet requirements from SFTR for all eligible asset classes.

“SFTR is one of the most complex and data-intensive regulatory reporting requirements the European securities finance market has ever seen. This collaboration between EquiLend and Trax streamlines the process, offering mutual clients the simplest and most comprehensive front-to-back SFTR solution available,” said Brian lamb, CEO, EquiLend.

EquiLend will link its trading and post-trade platform to the Trax system to provide client trading and life cycle event information, while Trax will provide EquiLend clients with data enrichment, reporting services and access to multiple trade repositories.

“The manual nature and multitude of actors involved in the securities financing trade lifecycle, in addition to the immense data requirements of SFTR, means that the industry needs more sophisticated data management and operational processes in place,” added Christophe Roupie, head of Europe and Asia, MarketAxess and Trax.

SFTR will require firms to report their securities lending and repo trades, apply standardised identifiers to transactions, as well as provide a wide range of data to trade repositories.

The regulation is set to come into force from the beginning of 2019.