NEX Regulatory Reporting announces it will apply to become an SFTR trade repository
09 November 2017
- New regulation seeks to provide transparency of securities financing transactions
- Clients of the BrokerTec and ENSO platforms will benefit from direct access to the SFTR trade repository and reporting solution
London - NEX Regulatory Reporting announces today its intention to apply to become a trade repository for the Securities Financing Transactions Regulation (SFTR) and launch a dedicated reporting solution, pending the issuance of the final technical standards from ESMA.
NEX Regulatory Reporting will in time add the SFTR trade repository and solution to its Global Reporting Hub to provide clients with an end-to-end solution for the securities lending and repo markets. The SFTR trade repository will be built and hosted in the cloud to ensure client data is processed and stored in a highly secure and robust environment.
Leveraging the NEX portfolio of services, NEX Regulatory Reporting will connect to the BrokerTec and ENSO platforms so that clients can automatically transfer their transaction data to the SFTR trade repository. The BrokerTec EU repo platform currently processes 10,000 repo trades per day with a total nominal trading volume of €250 billion, for over 90 clients, while the ENSO platform services over 100 hedge fund and asset management clients and has $1 trillion in client assets under advisory.
Ken Pigaga, CEO of NEX Optimisation, said: “While we await the final technical standards from ESMA, we have begun to put the building blocks in place for an SFTR solution and trade repository which will not only support our existing client base within NEX, but also the wider securities lending and repo markets. It’s important that service providers and clients alike begin to prepare for the impending regulation now, to avoid the last-minute rush for compliance that many in the market are currently experiencing ahead of MiFID II.”
Collin Coleman, Head of NEX Regulatory Reporting, said: “While most markets are used to a degree of regulatory reporting under EMIR, MiFID I and in now preparing for MiFID II, securities lending has to date been an unregulated market and so the introduction of SFTR will impact many global and regional banks and the buy side. Pending detail on the regulatory technical standards, we look forward to launching a complete SFTR solution and providing direct reporting access to NEX’s BrokerTec and ENSO clients.”
Intended to provide transparency and oversight on the use of securities financing transactions in the multi-trillion Repo and securities lending markets, SFTR will require financial and non-financial counterparties to report transactions to an authorised trade repository. Initially due to come into effect in Q4 2017 with a nine-month phase in period, the market anticipates that SFTR will come into effect during Q2 2019. Currently in review with the European Commission, ESMA is expected to release the final draft technical standards within the coming months.
Bryony Scragg, NEX
+44 (0) 20 7818 9689
Casey Sheets, NEX (US)
+1 917 246 2088
Michelle Gathercole, Argentus PR
+44 (0) 20 7397 2949
NEX REGULATORY REPORTING operates within NEX Optimisation, which helps clients simplify complexity and optimise resources. NEX Regulatory Reporting includes Abide Financial and Abide Financial DRSP, an FCA regulated entity. The platform introduces cost efficiencies, mitigates operational risk and provides regulatory reporting effectiveness. Through its multi-regime reporting hub, regulatory obligations are translated into future proof compliant solutions while its specialist advisory teams interpret the impact of evolving markets regulation relating to trade and transaction reporting. In addition to European regulatory environments (EMIR, MiFID/II, SFTR, REMIT), NEX Regulatory Reporting provides specialised reporting services for entities subject to international regulatory regimes such as Dodd-Frank, ASIC (Australia) and MAS (Singapore).
For more information, go to www.nexregulatoryreporting.com
NEX offers clients better ways to execute trades and manage risk. Our products and services underpin the entire trade lifecycle pre-, during and post-execution. Our electronic trading platforms are industry standards. Clients use our lifecycle management and information services to optimise portfolios, control risk and reduce costs. We partner with emerging technology companies to bring greater efficiency, transparency and scale to the world’s capital markets. NEX is headquartered in London with offices around the world. For more information, go to www.nex.com