UK-based fintech Finastra has launched a Securities Financing Transaction Regulation (SFTR) reporting tool to help banks meet the April 2020 deadline.
The new tool hopes to meet banks’ need for fast, automated trade reporting. It also aims to help reduce the time and costs associated with data capture and compliance.
Michael Henssler, General Manager Treasury and Capital Markets at Finastra, said: “Regulatory reporting is a vital but highly complex process. Many banks are still using manual, labor-intensive processes to report on regulations such as MiFID II and EMIR.
“From April 2020, banks and investments firms will need to start reporting on securities financing transactions. This is a daunting task should they not have the right resources and technologies in place.
“By moving Regulatory Reporting to the cloud, as a managed service, we are enabling banks to report at speed, removing complex manual processes.”
Henssler also said cloud-based technology will ensure banks are more prepared when it comes to new regulations.
How does the tool work?
The reporting tool collects and checks transaction information, such as repurchase transactions, securities or commodities borrowing and margin lending agreements. It collects this information from banks’ own or third-party systems.
According to Finastra, this will enable banks to handle new and changing regulations, whilst keeping in line with previous mandates.
Virginie O’Shea, Research Director at Aite Group, said: “Regulatory risks are minimised when data is securely stored in a cloud environment, and business value can be unlocked from combining data across the silos that exist in nearly every large capital markets firm.
“Even regulators are using cloud environments for cross-industry data aggregation purposes. In an environment that is as global as capital markets, working with a strategic repository of reporting data is a key benefit. This means regulators in other jurisdictions may follow their peers in implementing similar compliance obligations.”