Five things we learned at the Regis-TR SFTR workshop

We were delighted to attend the Regis-TR SFTR workshop in Frankfurt yesterday.  Here’s a quick summary of the key insights we picked up: 

  1. Data sourcing was perhaps seen as the greatest challenge, with c.40% of reportable fields not readily available from risk management and trading systems
  2. It is a significant logistical challenge to obtain data from so many sources (siloed businesses acting independently, tri-party agents, agent lenders, CSDs, legal and reference data hubs etc)
  3. Realisation that reporting hard-to-obtain data from such a large and disparate range of sources is an inherently risky business necessitating a rigorous controls environment (something Kaizen can help with) 
  4. Education is key, recent MiFID II experience and industry discussions indicate that many eligible reporting parties are thought to be blissfully unaware of their obligations under SFTR
  5. Pairing and matching obligations at trade repositories mean that firms need to become better at communicating with their counterparties to reap the benefits of a greater level of standardisation and operational efficiency while becoming ever more regulatory compliant.

For a consultation on your SFTR reporting preparation, please contact us.  

SFTR: Challenges of implementation