Investment Operations

Delta Capita, DTCC Collaborate on SFTR Testing

T+1 Settlement DTCC

Tech consultant Delta Capita has announced it is collaborating with The Depository Trust & Clearing Corporation (DTCC), in what it says is a bid to help market participants meet their Securities Financing Transactions Regulation (SFTR) trade reporting obligations.

According to a statement released today, Delta’s banking consortium is creating a standardised SFTR industry test pack. Under this new collaboration, Delta will make the test pack available to DTCC to test its own SFTR matching and reporting service prior to launch. DTCC opened user-acceptance testing with industry vendors on August 30, 2019.

“Our test pack will provide full traceability to the European Commission’s regulatory technical standards (RTS), the European Securities and Markets Authority (ESMA)’s guidance, and best practices across repo, sell/buy-back and stock borrow/loan,” said David Field, head of securities finance practice at Delta Capita. “It will provide users with the test data, test instructions and expected results to conduct their user acceptance testing (UAT), and to test with their counterparts, trading venues, service providers, central counterparties (CCPs), tri-party agents and trade repositories. Consortium members will be able to benchmark their testing run and pass rates to highlight any areas for review and remediation,” he added.

Analysts say clients of DTCC’s Global Trade Repository (GTR) service for SFTR – who independently license the consortium’s test pack – will benefit from knowing the service has already been tested, reducing their own testing effort and costs and ensuring readiness for trade reporting. Furthermore, DTCC will make its data transformation services available to Delta Capita’s banking consortium to assist with the creation of trade repository (TR)-ready ISO 20022 SFTR reports.