SmartStream RDU launches SFTR security reference data service

New service will help firms meet stringent new securities financing transaction regulations.

By Jonathan Watkins

The SmartStream Reference Data Utility (RDU) has launched a cloud-based security reference data service to help firms comply with the EU’s Securities Financing Transactions Regulation (SFTR) requirements.

The service will provide an accurate, comprehensive and easy-to-access means of obtaining the information needed to meet the regulation.

SFTR requires banks and investment firms to start reporting securities financing transactions (SFT) to a registered trade repository beginning 14 April 2020.

Each transaction report must include details of the transaction, the counterparties and the specifics of the security involved, and many firms are now focused on preparing for that date.

Gathering data required to complete SFTR reports could well prove a headache for most firms when the reporting obligations begin next year.

SmartStream RDU said in a statement its new service acquires instrument reference data from a broad range of industry sources. It then normalises, enriches and maps this information into the format required by SFTR and makes it available via a simple, cloud-based API.

Data is updated daily and five years of history is retained and accessible for back-loading, corrections and effective audit controls.

“Although ESMA’s reporting guidelines have yet to be fully finalised, proactive firms will now be planning carefully how best to meet SFTR reporting obligations,” said Peter Moss, CEO, SmartStream RDU.

“SFTR transaction reports are complex and most firms have been focusing on capturing the details of the transaction, creating a UTI and ensuring that they have the necessary counterparty details already. Our goal is to remove the complexity from sourcing high-quality reference data and enabling firms to focus on managing their business.”