SimCorp launches new cloud-based SFTR solution in bid to ‘liberate’ clients

SimCorp launches new solution as it aims to ‘liberate its clients from the arduous and costly task’ of transaction reporting under SFTR.

By Jonathan Watkins

SimCorp has gone live with a Securities Financing Transactions Regulation (SFTR) cloud solution for transaction reporting requirements mandated under the incoming rules.

With the regulation hitting buy-side firms from April 2020, SimCorp has partnered with the deltaconX regulatory platform as part of an overall goal to ‘liberate its clients from the arduous and costly task’ and instead enable them to focus on their core business.

According to SimCorp the integration with deltaconX will help manage the flow of reporting to trade repositories, with SaaS technology ensuring fast onboarding.

Part of the European Commission’s drive to increase transparency and improve execution, SFTR boasts an impressive 155 fields of data, which need to be reported in the ISO 20022 format.

The regulation demands robust post-trade reporting processes and technology, proving a challenging requirement for many investment firms.

“The pace of regulations has not made it easy for firms to tackle the challenge of technological innovation,” said Gernot Schmidt, product manager for regulatory solutions, SimCorp.

“As a result, best-of-breed architectures and insufficient legacy systems continue to hamper investment firms’ ability to respond to the challenges of regulatory reporting. With the addition of the new SFTR cloud solution as a managed service and a strong partnership with deltaconX, our clients can now benefit from an even lower TCO and focus on the business of alpha generation.”

The solution will provide clients with transparency and control of the data that will be reported, including flexibility to load third-party data, such as tri-party agent collateral reports.

In addition, its integration with SimCorp Dimension’s Investment Book of Record (IBOR) delivers the buy-side automated daily report processes, complete validation of trade data against the regulatory rule set and a consistent overview across all business processes.

“Up to 40% of the data required is estimated to be difficult to source,” said Carsten Kunkel, head of SimCorp’s global regulatory centre of excellence. “Firms cannot afford to take a piecemeal approach and instead must look to consolidated operations and robust regulatory reporting to tackle the sheer impact to business. SimCorp’s solution provides an unparalleled transparency and control of the data that will be reported, including flexibility to load third party data, such as Tri-party agent collateral reports.