The time for wait-and-see is over:
Be prepared to tackle SFTR

The next regulatory challenge facing firms operating in the EU is here: the Securities Financing Transaction Regulation (SFTR), which aims to increase transparency in the use of repos and stock loans, and on the risks around entering collateral arrangements.

Having been dormant for over a year, things have now picked up with the release of the Regulatory and Implementing Technical Standards. The industry has finally received greater clarity both on the nature of the European Commission standards as well as on the implementation timelines. 

Until recently, many firms were unsure on what level of commitment to dedicate to the implementation, struggling, for instance, to reallocate resources employed in the completion of MiFID II. However, with Q2 2020 not as far away as it might seem, and given the considerable scale of the SFTR reporting challenge – it is now imperative that firms ensure they are using this time wisely to make as much progress as possible in terms of the readiness of their operation models and infrastructure.

Under the new rules firms that enter into collateralised transactions such as repos, securities or commodity lending or borrowing transactions as well as margin loans and total risk return swaps, need to comply with SFTR. Both financial and, ultimately, non-financial companies will be required to report such transactions to approved trade repositories.

Moreover, SFTR will not only extend reporting requirements, but it will also directly impact trading and collateral management. If it ever truly was previously, collateral will no longer be completely fungible. And that will have practical trading and process implications.

It is quite evident that SFTR is more than a simple trade reporting practice. It impacts a wide-range of investment firms in areas such as businesses processes, controls, operations, IT systems and compliance. The SFTR Implementation Forum will help you understand all aspects of the regulation, avoiding implementation delays, fines and operational hiccups. Through a series of keynote panel discussions and case studies, our expert speakers will take you through all challenges of the SFTR business model, including UTI generation, the reporting obligation to the TRs and, finally, the reconciliation process.

Attending this summit will enable you to:

• Gain a thorough understanding of the increased transparency: why regulators need SFTR
• Hear about how to prepare for SFTR at the national level: the FCA’s point of view 
• Learn about SFTR’s technical standards and implementation guidelines: understanding issues and overcoming concerns
• Discuss the possibilities of trade and transaction reporting post-Brexit
• Fully understand how to harmonise trade data and reporting requirements thanks to lessons learnt from EMIR, MiFIR and REMIT
• Standardise trade data and reporting requirements internationally
• Become familiar with updated trading and process implications: collateral reporting and re-use
• Hear the latest on UPI/UTI harmonisation updates: overcoming uncertainties and challenges related to UTI emission and reconciliation
• Develop an understanding of the benefits of creating synergy and seeking alignment with the CSDR
• Effectively manage relationships with third-party vendors and trade repository
• Harness new technologies to optimise reporting: evolution rather than revolution