With only 394 working days left till the estimated go-live date of the Securities Financing Transactions Regulation (SFTR) there is still so much work to be done and challenges to be resolved. Whilst there seems to be no shortage of collaborative efforts looking to tackle ambiguous data fields and inconsistent life-cycle events across counterparties, very little is being done to harmonise these views throughout the industry. Our twelfth Reporting and Reference Data Special Interest Group (RRDS) will look to do just that.
The new transaction reporting obligation was announced back in 2014, entered into force on 12 January 2016 and, due to recent developments regarding the endorsement of forthcoming standards by ESMA and the EC, will require banks and investment firms to report their SFTs to trade repositories by Q1 2020 at the earliest.
The reporting requirement itself is dual-sided and requires the provision of a Unique Transaction Identifier (UTI) for each trade, irrespective of whether it is at the transaction or position level. The question is, who is meant to provide the UTI? This is still unclear at this point of the implementation process.
Market participants also will be required to report a comprehensive series of trade details throughout the lifecycle of the trade, including changes to market price and loan value as well as corporate actions out-turns. Given that the operational model for securities lending differs amongst counterparties, it is critical for the regulator, or the industry, to architect a common framework which would allow counterparties to map their internal SL life-cycle process back to the ‘Action Types’ detailed in the latest RTS and subsequently, to the different data fields.
Join us and 30+ participants from the sell-side and buy-side on the 4th October 2018 to help coordinate an industry framework for SFTR implementation. Issues the subject matter experts will be discussing are:
- Expected RTS and go-live timing
- The implications of Brexit on effective transposition
- Definition of common life-cycle events ISLA, ICMA update
- Agreed industry scenarios for testing purposes and acceptance criteria
- Detailed use cases, data sets and identifiers
- Common approaches to shared data (e.g., UTIs, UPI, LEI)
- Data validation rules
- Delegated reporting legal framework and documentation
- Client / supplier communications
- UK PLC SFTR Project Management Office
JWG’s RRDS special interest group is running its second SFTR focused workshop to help the industry agree a common framework for SFTR implementation. Please get in-touch with us through email@example.com if you would like to reserve your seat.