Vanguard, Citi and Morgan Stanley join IHS Markit SFTR reporting service

The securities lending and prime brokerage divisions of five banks and Vanguard have joined the SFTR design partner group.

By Joe Parsons

Vanguard has become the first asset manager to join the IHS Markit securities finance transaction regulation (SFTR) design partner group.  

As well as Vanguard, the securities lending and prime brokerage divisions of Citi, Morgan Stanley, Royal Bank of Canada and UBS have also joined the group. 

The solution, in partnership with Pirum Systems, enables trade reporting to repositories for repo and reverse repo agreements, securities lending, prime brokerage margin lending and collateral reuse.  

The rules will fall on all market participants, including the buy-side, agent lenders, repo dealers and prime brokers. 

“With MiFID II in effect, the securities finance industry is preparing for future obligations under SFTR, which for the first time imposes trade reporting requirements on repos and other transactions,” said Ed Marhefka, managing director and global co-head of securities finance, IHS Markit.

“Our design partner group brings together global expertise across the full spectrum of securities finance transactions, which will help us deliver the industry’s most robust and efficient SFTR reporting solution.”

In October IHS Markit onboarded its first lot of agent lending banks to the SFTR service, including BNY Mellon, Deutsche Bank agent lending, eSecLending and Deutsche Bank, among others. 

Last month, IHS Markit extended its partnership with the London Stock Exchange’s trade repository, UnaVista, where it will provide its data management capabilities to simplify SFTR reporting.

IHS Markit stated it is engaging with other vendors, trade repositories and agents with approved publication arrangements (APAs) on the design of its SFTR reporting solution.