Investment Operations

With Less Than a Month to Go, DTCC’S SFTR Community Jumps to 250 Users

Clearstream Digital Assets

Key milestone reached with less than a month to go before first go-live date for securities financing transactions reporting

With the deadline for the European Securities Financing Transactions Regulation (SFTR) quickly approaching, The Depository Trust & Clearing Corporation (DTCC) announced yesterday that 250 clients have now committed to use the firm’s multi-award winning Global Trade Repository (GTR) service to meet their reporting obligations. This is an 80% increase in the total number of clients signed-up for the SFTR service since the beginning of 2020.

SFTR will take effect for banks, broker-dealers, agent lenders, CCPs and CSDs on 13 July 2020, followed by buy-side entities on 11 October 2020, and finally with non-financial counterparties on 11 January 2021. DTCC’s GTR service supports all product types that need to be reported under the SFTR regulation, including repo and reverse repo, securities and commodities lending and borrowing, sell/buy-back, buy/sell-back and margin lending and borrowing.

“We are ready to help firms comply with the regulation on Day 1. While some technical issues remain, such as reconciliation processes and the reporting of lifecycle events, these can and will only be resolved when implementation begins,” said Val Wotton, Managing Director, Product Development & Strategy of Repository & Derivatives Services at DTCC. “For buy-side firms subject to the regulation, we encourage them to act quickly to address any remaining reporting challenges and complete testing to ensure readiness for the October implementation date. With the majority of leading global banks and agent lenders on the SFTR service, we will continue to work closely with market participants and the wider GTR community as the regulation takes effect,” Wotton added.

DTCC said its GTR service has steadily increased its user community on a global scale since the first major reporting obligations entered into force. According to DTCC literature, the GTR service has become the industry’s trade reporting solution of choice for OTC and exchange-traded derivatives, serving approximately 80% of the global market. Its total client base stands at 5,294, with 67% of clients based in Europe, 21% in North America and 12% in Asia.

Industry watchers say users of DTCC’s GTR service can further simplify their trade reporting processes by leveraging DTCC Report Hub, a customizable suite of pre- and post-reporting data and reconciliation capabilities that 30 firms have signed onto.