Deutsche Börse to Launch SFTR Solution Through Regulatory Hub

Deutsche Börse announced this Tuesday that its Regulatory Reporting Hub would be adding a new solution for the Securities Financing Transactions Regulation (SFTR) to help its clients manage their reporting data quality, efficiency as well as manage any challenges associated with the Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.

The SFTR regulation requires firms within the European Union (EU) to report their Securities Financing Transactions (SFTs) to a trade repository that’s registered by the European Securities and Markets Authority (ESMA).

Broadly speaking, SFTs are transactions where securities are used to borrow cash or the other way around. This mostly includes repos, securities lending activities, as well as sell/buy-back transactions.

According to the statement, Deutsche Börse’s SFTR solution will cover data collection, validation, enrichment, submission report construction, and trade repository integration with REGIS-TR.

The Regulatory Reporting Hub is a platform that offers numerous regulatory compliance solutions. Via the platform, clients of the Frankfurt-based firm will be able to report any type of SFTs.

Commenting on the solution, Thomas Feindt, Head of Regulatory Services at Deutsche Börse said: “Deutsche Börse’s Regulatory Reporting Hub will deliver a unique solution for SFTR by leveraging the Group’s specific assets and reference data. Deutsche Börse’s SFTR reporting service enables our clients to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term synergies across multiple regulations.”

Furthermore, the Regulatory Hub will also ensure that Eurex Clearing’s cleared securities lending and repo business is SFTR compliant and will allow members to strengthen their SFTR reporting through Eurex Repo and Eurex Clearing data.

The SFTR solution aims to reduce the implementation for clearing participants while also increasing reporting efficiency by using consistent data, the statement released today said.

SFTR Regulation to Come into Full Effect in 2021

The SFTR will come into effect in stages. The first stage, which will be applicable to banks, will commence on April 11, 2020. The regulation will then be implemented for buy-side firms on October 11, 2020, and will be in effect for all parties on January 11, 2021.