SFTR - Reports for securities financing transactions


SFTR - Reports for securities financing transactions

European Union regulation 2015/2365 (SFTR) introduces new rules on the transparency of Securities Financing Transactions (SFT: sales with repurchase agreement – repo, securities and commodity loans, repurchase agreements and margin lending).

The SFTR requires banks, central counterparties, custodians, insurance companies, UCITS, AIFMs and non-financial companies to disclose details of transactions carried out and their changes to a trade repository.

The variety of transactions and related changes to be reported and the amount of data to be managed for each operation, require the regulatory compliant subjects to introduce new automated data collection, validation and reporting processes.

In order to avoid incurring errors and penalties, stringent governance must be applied to these processes, starting from the collection of data to the management of trade repository feed-back on the reports made.

The value proposition of CAD IT

The CAD IT SFTR solution has two independent applications:

SFT Reporting

  • SFT Reporting manages SFT registration and the production and management of reports to trade repositories.
  • SFT Reporting is a module of the GRS procedure (Global Reporting System) which also manages alerts for EMIR, DFA, FinfraG, MiFIR, SixTR purposes.

REPOS platform (Finance Area module)

  • REPOS Platform is the Finance Area (AF) procedure module specialized in the management of a wide range of SFTs.
  • REPOS Platform is updated to SFTR in order to provide the reporting procedure with the necessary data for new reports with reference to the currently managed SFT operations.

Main benefits

  • Guarantee of coverage of all regulatory requirements, both in terms of managing SFT transactions (Repos Platform) and in terms of complying with reporting obligations (SFT Reporting).
  • Complete automation of the entire reporting process, from data collection to trade repository feed-back management.
  • Effective supervision of alert activities through a workflow and a monitor that manages and monitors every process, with evidence in real time of only those cases that require employee intervention.
  • Technical monitor to check the system and input and output processing statuses.
  • Reliability thanks to CAD IT Group’s knowledge of SFTs and regulatory reporting problems as well as to the vast base of installations in Italy and abroad.
  • Possibility of managing different reports in a single application, through optional modules, sharing common process and governance problems (EMIR, DFA, FinfraG, MiFIR, SixTR), achieving results in terms of process rationalization, costs and risk reduction.
  • For customers who already have current versions of CAD IT applications:
  1. Enhancement of existing investments that evolve and are further enriched with new functions.
  2. Reduction in implementation project complexity thanks to the native interface between Repos Platform and SFT Reporting.