Ahead of the SFTR go-live Pirum enhance their CCP Gateway to allow the novation of reportable transactions, enabling clients to manage both real-time novation and the SFTR data required to remain compliant
Pirum is pleased to announce the rollout of SFTR compliant novation processing for the Pirum CCP Gateway via Eurex Clearing. This has also included the processing of the first SFTR compliant securities lending trades through the platform.
SFTR requires specific reporting requirements for clearing, including new data fields in order to report trade, collateral and novation activity. Pirum has successfully novated the first trades using this augmented data, and although the SFTR go-live date has been effectively delayed until July, this represents a significant milestone in both our preparations for SFTR reporting and the on-going rollout of the CCP gateway capabilities.
Pirum’s CCP Gateway facilitates the matching of trades, novation by the CCP, and full trade lifecycle and collateral processing in real-time. The CCP Gateway significantly reduces the effort for firms to establish connectivity to Eurex Clearing, along with automating the day-to-day activity with the CCP.
“There are a number of considerations for firms looking to clear securities lending trades, particularly around matching and novating the trade and managing all the lifecycle events whilst the position remains open. This coupled with the specific SFTR requirements around novation and the related data fields resulted in a significant project to ensure clients using our CCP Gateway remain compliant” said Robert Frost, Head of Product Development at Pirum.
“SFTR has been one of the most significant changes specific to the securities lending market. As a key market infrastructure provider, it was critical that we were aligned with all vendor solutions that directly impact our client base. Our collaboration with Pirum to successfully deliver a best in class solution was completed with zero impact on our clients.” Jonathan Lombardo, Senior Vice President Fixed Income Sales l Derivatives, Funding & Financing at Eurex Clearing.