SmartStream launches API for SFTR reference data service as deadline looms

Service will enable firms to reduce implementation time for deploying key components for sourcing accurate reference data, says SmartStream. 

By Jonathan Watkins

SmartStream has included an API within its Reference Data Utility (RDU) Securities Financing Transactions Regulation (SFTR) service to meet clients’ evolving data and technology requirements ahead of the impending regulatory deadline.

The Transaction Lifecycle Management (TLM) solutions provider claimed the move will be critical for firms meeting the ESMA SFTR reporting deadline of 13 July.

The European Securities and Markets Authority (ESMA) delayed the application of SFTR by three months back in March due to the COVID-19 pandemic. The rules are part of the European Commission’s drive to increase transparency in the securities financing practice, with a requirement to report 155 fields of data in the ISO 20022 format. 

With the addition of the API, SmartStream said firms will have quick access to new tools to manage their SFTR compliance needs, enabling them to reduce implementation time for deploying the key components for sourcing accurate reference data. 

The onboarding process allows firms to be up and running with the service within 24 hours. 

“In response to the adverse developments resulting from the Coronavirus outbreak, ESMA made the bold decision to postpone the original deadline for the SFTR reporting obligations,” said Linda Coffman, EVP, SmartStream RDU.

“Despite having an additional three-month window to prepare, we have found that many firms need extra help to get them across the finish line. We understand the pressures of meeting regulatory obligations, and we are providing easily accessible technology which focusses on key SFTR reference data attributes.”  

SmartStream said the RDU SFTR service can be integrated as a value-added service to an established solution, or it can be the start of a control framework specifically targeted at reference data for SFTR obligations. 

The technology assists firms to validate reference data content during the final weeks of testing before the regulatory deadline – whether that involves filling data gaps, resolving exceptions, not having full issuer to ISIN LEI coverage, or helping firms to avoid counterparty breaks and rejected reports. 

“Clients who have implemented the RDU SFTR solution are confident in the strength and accuracy of the data returned, and can be confident that it aligns with regulatory requirements,” added Coffman. 

“In addition, they appreciate the subject matter expertise we provide in monitoring the regulation and delivering insights into data trends.”