The implementation timeline for Securities Financing Transactions Regulation (SFTR) is now set: The new reporting regime according to the Article 4 of the SFTR has gradually become applicable for various types of reporting institutions, starting with credit institutions and investment firms on July 11, 2020 (originally planned for April 11, 2020 but postoned due to the Covid-19 pandemic). The complexity of the SFTR reporting obligation and hard deadlines pose a significant challenge for market players.
The reporting scope under SFTR has been defined by the ESMA in the form of Technical Standards (RTS/ITS) with detailed specifications regarding SFT reporting, data collection and availability. The reporting obligation applies to repurchase agreements, buy/sell backs, securities/commodities lending and margin lending trades. Up to 155 different data field have to be reported depending on the type of asset class.
SFTR closely resembles the European Market Infrastructure Regulation (EMIR). Article 4 of the SFTR requires reporting institutions to submit each securities financing transaction (SFT) including several lifecycle events of the SFTs to an authorized Trade Repository (TR) by end of the following business day. These reporting requirements apply to financial, non-financial and central counterparties in the EEA including all branches irrespective of their location as well as third-country entities if the SFT is concluded by a branch within the EEA.
Abacus Transactions is an established standard software solution for transaction-based reporting covering the requirements of multiple reporting regimes, such as EMIR, MMSR, MiFID II / MiFIR, FMIA/FinfraG, and now also SFTR. Different regulatory frameworks are covered in separate modules. Due to the layer structure, the client has the flexibility to use the SFTR module separately as well as in combination with other Abacus Transactions modules.
We have already implemented most parts of our reporting engine for the new SFTR module to enable the automatic generation and submission of SFTR reports to the trade repositories by adapting the reporting logic of our established EMIR solution. Abacus Transactions has been in use since 2014 and has become well-established in the market, with renowned clients in seven countries successfully using the software to comply with several transaction-based reporting schemes.
Alexander Becht, Product Manager for Abacus Transactions at Regnology
The daily transaction and position data required for the SFTR reporting is delivered from the source systems (e.g. front and back office systems) via standard interfaces, thus meeting the requirements of our harmonized data model. The process chain from the data import to the submission of reports has been standardized to a considerable extent, making Abacus Transactions a highly automated reporting solution.
Abacus Transactions supports the generation of the ISO 20022 SFTR reports and their submission to the trade repositories REGIS-TR and DTCC as well as to the Regulatory Reporting Hub (RRH) of Deutsche Börse Group for both individual institutions and groups.
With the ABACUS/Transactions MIFIR module, we provide asset managers with a user-friendly solution to submit their MiFIR reports to the FMA on a daily basis in a largely automated manner. BearingPoint has proven itself to be a competent solution provider, whose software helps us to offer our customers a comprehensive service and to facilitate their compliance with current regulatory requirements.
Tino Kesseli, Head of IT at CSL Corporate Services / Press Release, November 2018
Based on our positive experience with ABACUS/Transactions for EMIR and MMSR reporting, we decided to use it also for MiFIR and MiFID II commodity derivatives reporting. It is very beneficial for us to have one solution which covers several types of transaction reporting – it reduces development and deployment costs, saves us time in implementation and training, and contributes to data harmonization. The decision to use ABACUS/Transactions for the implementation of MiFID II/MiFIR reporting proved to be a great success for us.
Bernd Großmann, Head of Department Backoffice FM, and Helmut Kutschera, Head of Department IT Application Management at Landesbank Baden-Wuerttemberg / Press Release, May 2018
As an important player in the financial market, we need to meet the whole range of transaction-based reporting requirements. With ABACUS/Transactions, we have found a software which can be used for various reporting types. This is time-saving, cost-effective, and will make our work much easier in the future, since we have to prepare and deliver the data only once.
Fariborz Nourani, Head of Division Head Office Operations at RBI / Press Release, January 2018
Due to MiFIR complexity and a tight deadline, we had to find a software provider that could not only demonstrate profound expertise in transaction reporting but also implement its solution within a very short timeframe. Therefore, we have opted for BearingPoint with its proven track record in regulatory reporting. The result exceeded our expectations: BearingPoint’s Abacus solution was deployed within just a few weeks after our initial meeting. As a result, we have been successfully submitting our daily reports under MiFIR since its launch.
Holger Englert, Chief Executive Officer at PASS Banking Solutions / Press Release, May 2018
We opted for ABACUS/Transactions as we could minimize the IT development and deployment effort with a Regulatory-as-a Service set-up, yet use a standardized reporting solution. Functional benefits were important in our decision for ABACUS/Transactions. For example, the module relevance check allows us to build a single interface for our source systems and report across multiple transaction based reporting regimes using such single interface.
Martin Kuijper, Head of IT at BNG Bank / Press Release, August 2017