SimCorp, a leading provider of investment management solutions and services to the global financial services industry, today announces the go-live of its SFTR cloud solution, available to clients as part of SimCorp’s latest software release. The solution offers clients an integrated and efficient cloud solution for SFTR transaction reporting, in collaboration with the deltaconX regulatory platform. The go-live, in partnership with deltaconX, a market-leader in regulatory compliance, delivers buy-side clients significant time ahead of the first wave of the Securities Financing Transactions Regulation (SFTR) reporting requirement, in April 2020.
Part of the European Commission’s drive to increase transparency and improve execution, the Securities Financing Transactions Regulation (SFTR) completes a trinity of core regulations, following EMIR and MiFIR, impacting the global buy-side. With an impressive 155 fields of data, which need to be reported in the hugely complex ISO 20022 format, the regulation demands robust post-trade reporting processes and technology, proving a necessary but challenging requirement for many investment firms.
In recent buy-side discussions, SimCorp has found that data continues to form the critical concern, both in its availability and in the alignment with counterparties. At the same time, the oversight required, especially in the case of delegated reporting, bears an altogether heavier burden on resources.
Carsten Kunkel, Head of SimCorp’s Global Regulatory centre of Excellence states: “While the reporting regime may be structurally similar to EMIR, the buy side cannot write off SFTR as just another EMIR. Up to 40% of the data required is estimated to be difficult to source. Firms cannot afford to take a piecemeal approach and instead must look to consolidated operations and robust regulatory reporting, to tackle the sheer impact to business. SimCorp’s solution provides an unparalleled transparency and control of the data that will be reported, including flexibility to load third party data, such as Tri-party agent collateral reports.”
SimCorp’s cloud based full-service SFTR solution, delivered by its Regulatory Center of Excellence, offers seamless transactions processing in SimCorp Dimension, with a strong standardized integration to deltaconX, to manage the flow of reporting to TRs, with SaaS technology ensuring efficient and fast onboarding. Part of a drive towards managed services, the solution sees SimCorp taking greater responsibility for regulatory compliance and maintenance, liberating its clients from the arduous and costly task and instead enabling them to focus vital resources on their core business.
Combining deltaconX’s global compliance expertise and SimCorp’s regulatory best practice, the end-to-end service offers a quicker time-to-value, by leveraging market standard implementation, continual monitoring and seamless upgrades. In addition, its integration with SimCorp Dimension’s Investment Book of Record (IBOR) delivers the buy side highly automated daily report processes, complete validation of trade data against the regulatory rule set and a consistent overview across all business processes. This will help firms achieve superior reporting quality, a point that is recently being stressed as extremely important by ESMA and national regulators.
Gernot Schmidt, Product Manager for Regulatory Solutions, SimCorp explains: “The pace of regulations has not made it easy for firms to tackle the challenge of technological innovation. As a result, best-of-breed architectures and insufficient legacy systems continue to hamper investment firms’ ability to respond to the challenges of regulatory reporting. SimCorp’s clients are ahead of this curve, optimizing operational and reporting processes by means of one highly automated and consolidated platform. With the addition of the new SFTR cloud solution as a managed service and a strong partnership with deltaconX, our clients can now benefit from an even lower TCO and focus on the business of alpha generation.”
Thomas Buk, Managing Director at deltaconX adds: “The partnership with SimCorp is the result of a strong synergy that comes as a timely response to the current regulatory conundrum. SimCorp’s proven track record and client commitment, together with deltaconX’s centralized regulatory platform, provides the buy-side a compelling and complete solution, which meets their need. By combining unified regulatory compliance processes within SimCorp’s integrated solution and with a managed service, investment firms are excellently placed to respond to the regulatory obligations presented by SFTR.”
