Investment Operations

SIX Launches Fully Delegated SFTR Reporting for Swiss Repo Market


Complex reporting obligations resulting from the Securities Finance Transaction Regulation (SFTR) can be fully delegated to the Swiss Stock Exchange. The Collateral Cockpit™, launched in 2019 by the Swiss Stock Exchange, said SIX, manages the cumbersome process on behalf of financial institutions, and the service offers scale benefits for resource strained organizations at a time when it will be most needed.

The Swiss Stock Exchange confirmed yesterday that its SFTR reporting service is now live in synchronization with the introduction of the regulation. The Exchange estimates that over 170 clients stand to benefit from this offering, which automates the way it provides Unique Transaction Identifiers (UTI), creating a scale offering featuring SFTR-compliant and fully delegated reporting. For this delegated reporting, SIX has partnered with UnaVista, London Stock Exchange Group’s trade repository.

According to industry analysts, SFTR requires a vast amount of transactions to be reconciled among market participants, regulators and trade repositories with the aim of creating market-wide transparency and efficiency. The impact is particularly felt among smaller and mid-sized institutions that have to operate on thin margins with low scale. Delegating the work to an infrastructure provider like SIX, they say, is an efficient means to compete.

As SFTR is a European regulation, SIX partnered with Comyno, a consultancy firm based in Frankfurt. “The launch of this service is yet another commitment to the cross-border business in our market,” said Raphael Heuberger, Head of Business Development Securities Finance, Securities & Exchanges, SIX. “With a long-term strategy, effective partnerships and scale, we support the market to tackle their vastly changing regulatory environment,” he added.