Securities Financing Transaction Regulation (SFTR) Implementation and Support

SFTR impacts the ‘shadow banking’ world of securities, aiming to increase transparency across traded repurchase agreements, securities and commodities lending, buy-sell back transactions and margin lending transactions. These securities industries are merged under one reporting requirement that is SFTR reporting.

SFTR Reporting Requirements

Regulated by ESMA, firms must report their SFT transactions to a registered trade repository, ensuring that the 155 reportable fields are submitted in a consistent, timely, valid and accurate fashion. This new reporting requirement has created significant challenges across the market place, and is one of the largest reporting regimes in operation.

How Duff & Phelps Can Help

If you are facing regulatory action or require some independent and expert assurance that your current SFTR reporting arrangements and preparations meet the required standards, Duff & Phelps can offer expert reviews and assurance to manage your potential regulatory risk. Our regulatory reporting specialists have experience of working in UK based trade repositories and the FCA’s Markets Reporting Team (MRT) (formerly Transaction Monitoring Unit (TMU)), combined with extensive experience of working within financial firms and providing consulting services to investment banks, brokers, platform providers, asset managers, approved reporting mechanisms (ARMs), exchanges, multilateral trading facilities (MTFs) and organized trading facilities (OTFs).

Whether you are a smaller firm looking for a subject matter expert or a global institution looking for assistance with reporting your complex derivatives, our specialist staff can help you. We tailor our approach to the trading activities and processes of our clients.

Our services include:

• SFTR Implementation
• One off or annual assurance reviews
• Assisting firms and senior management when signing a transaction reporting attestation letter to the regulator
• Deep-dive reviews and regulatory investigations
• Preparing for visits from regulators in relation to transaction reporting
• Managing or assisting with transaction reporting remediation and back reporting programs
• Capturing and documenting the reporting requirements specific to your trading scenarios and product mapping across all systems
• Documentation (policies, operational procedures and reporting logic)
• Independent data accuracy testing of all instruments, scenarios and data fields
• Preparing and delivering technical, regulatory and operational staff training across departments