Getting data right is never easy and, with SFTR’s drive for transparency kicking into high gear, the risks of getting reporting wrong are greater than ever. The question is whether firms can digest and follow-through on the lessons learned from past trade and transaction reporting requirements like MiFID II and EMIR, and collaborate ever more closely to establish a shared solution to a problem.
With a significant amount of SFTR work to be done in 2019, why not make your life easier and join JWG, firms, and vendors on the 4th December 2018 at the Financial Conduct Authority (FCA) to discuss how an industry wide SFTR Project Management Office (PMO) could help facilitate a cross-industry dialogue for easier SFTR implementation.
Project milestones need to be met by 2019
The complex and costly reporting regulation will oblige firms to report every new trade, amendment, correction, and error, as well as most life-cycle events through 153 data fields sometime in the beginning of 2020.
As highlighted in this Thomson Reuters article, 2019 will be a year of “frantic implementation time. Firms will have done transaction reporting projects in the past, but you are looking at different products now and they have different life-cycle events and different reporting is taking place. With SFTR it could be you have to report a couple of transaction or life-cycle events for one day and you have to sequence them correctly which is difficult.”
From an industry-wide perspective, our research shows how multiple trade associations, technical vendors and consultants have developed their own interpretations of the requirements, creating challenges for counterparties and vendors having to match and reconcile a significant portion of the reports.
The role of a SFTR Project Management Office
JWG along with its members has envisioned a UK SFTR Project Management Office (SFTR PMO) potentially to be run as part of the RegTech Council with the FCA’s support. This work could be linked to the FCA’s work on Digital Regulatory Reporting, which should ultimately make SFTR reporting machine readable and executable, instead of everything ending up stuck in hard code or a spreadsheet.
In a recent interview with Thomson Reuters, PJ Di Giammarino, JWG’s CEO commented “Right now, financial intuitions and their suppliers need the regulators’ help to establish a safe space where the industry can collaborate and agree the artefacts required to implement SFTR right.” He went on to say that the “the good news is that over the last couple of years new technology has been proven to be able to solve these issues and can be quickly deployed to help the thousands of firms involved in implementation. The even better news is that if we work together, we can get through Brexit AND have the future road-map for taking the pain out of regulatory reporting by go live.”
Interest in participating? Contact us at email@example.com to register your interest for our next Reporting and Reference Data Special Interest Group on the 4th of December. Members will be discussing:
- The FCA’s Digital reporting FS18/2 findings
- RegTech Council project framework update
- Desired SFTR project outcomes
- Project governance and commercials
- Draft plan