top of page
Business Consultation

SFTR

Securities Financing Transaction Regulation

Background :

The European Commission (EC) published the Securities Financing Transactions Regulationin response to recommendations made by the European Systemic Risk Board (ESRB) and Financial Stability Board (FSB). Put in place to increase transparency in securities lending and repurchase (repo) and mitigate risks in shadow banking, SFTR covers more ground than the European Market Infrastructure Regulation (EMIR), which is limited to OTC and listed derivatives’ reporting. It requires 155 data fields be reported, covering trade information, legal agreements, relationship and reference values. Reporting this information completely and accurately is a priority for firms looking to comply with the regulation.

Objective :

  • As European regulators required market participants to start reporting Securities Finance Trade Reporting to Trade Repositories, the ECN wanted to offer a subscription service to its clients

  • The solution needed to be highly available, scalable, robust, and auto-recoverable with the ability to process 5 million transactions per hour

  • The solution needed to incorporate quality checks to maximize the acceptance rate at the Trade Repository (TR)

  • This needed to be done within tight timelines

Solution :

  • Multiple mechanism to ingest client transactions (SFTP interface and file uploads through UI)

  • OSGI based processing (Enrichment, Validation, Ingestion & Response) and Angular based UI to upload/view transactions status through graphical widgets and search pages

  • UTI generation, sharing and matching through UTIP subsystem

  • Robust and generic solution to handle multiple SFT reports and support reporting to 3 major TRs (DTCC, Unavista and Regis TR) in EU region with capability to add new TR interfaces easily

  • Highly concurrent system to support processing a high volume of transactions

Outcome :

  • Tyctech  team successfully rolled out the newly developed SFTR application within regulatory deadlines and with a 97%+ TR acceptance rate

  • It helped Post Trade line of business increase its footprint in the European SFT space

  • UTIP subsystem enabled the ECN to be one of very few UTI creation + matching platform providers in the market and became an additional revenue stream

bottom of page