Broadridge Financial Solutions has launched a trade reporting solution that will tap into its existing securities finance and collateral management offerings.
Under the Securities Finance Transaction Regulation (SFTR), EU counterparts engaged in securities finance transactions are required to report data to a registered trade repository.
According to Broadridge, its new offering spans the entire reporting lifecycle and includes system-level data extracts from its securities finance and collateral management solution, through to unique trade identifier generation, matching and reporting to trade repositories.
“The SFTR rules present a major challenge for all market participants due to their complex nature, dual-sided reporting and proximity to MiFID II compliance deadlines,” said Tom Carey, president of global technology and operations, international for Broadridge.
“This new solution will enable clients to adapt to SFTR smoothly while minimising operational disruption and reducing the resource impact of complying with multiple concurrent reporting mandates.”
Broadridge said the new offering will enable market participants to achieve implementation and meet the projected regulatory deadlines in 2018.
Initially implemented in July 2016, SFTR rules bind all current and future transfer and security collateral arrangements to a variety of financial agreements.
These include all parties that accept collateral informing their counterparties of relevant risks involved in entering a title transfer arrangement or granting a right to reuse collateral under a security arrangement.
SFTR had been designed to improve transparency of collateral reuse in the wake of the financial crisis which had seen collateral reuse drop.