SFTR Reporting

The Securities Financing Transactions Regulation (SFTR) is an extensive set of reporting requirements from ESMA and the UK’s FCA.

Article 4 – the reporting requirement – is now live for both buy-side and sell-side firms.

Kaizen's SFTR Reporting services are spearheaded by Jonathan Lee, one of the industry's foremost experts on the requirements.

What is SFTR Reporting?

SFTR aims to improve transparency and reduce risks in securities financing markets; namely the repo, securities lending, buy-sellback and margin lending (prime brokerage) markets.

Firms trading securities financing products (financial and non-financial) must report details of all securities financing transactions to ESMA via a Trade Repository.

This complex requirement incorporates the following:

  • Up to 155 fields to report depending on product
  • Counterparty, loan & collateral, margin & re-use tables to populate
  • Nine reportable action types
  • Up to 48 fields reconcilable for pairing & matching on day one, increasing to 74 after two years
  • Common standards (ISIN, LEI, UTI, CFI) plus extensive classification field requirements
  • Identification of beneficial owners
  • Reconciliation sensitivity around execution timestamps.

How we can help

Our ReportShield™ quality assurance services have been designed to meet the requirements of Article 4 and include Accuracy Testing of every SFTR report, testing and mapping of all reference data, plus testing that all delegated reporting has been reported accurately and completely. 

“Ensuring a robust control environment is in place, incorporating front-to-back reconciliations and quality assurance testing, will place you on the front foot with SFTR and in your relations with your national competent authorities.”

Jonathan Lee - Senior Regulatory Reporting Specialist – Kaizen Reporting

Is your SFTR reporting accurate?

To find out, or for a conversation with one of our regulatory specialists, please get in touch.

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