NEX Regulatory Reporting, Delta Capita Combine Efforts to Advise on SFTR

NEX Regulatory Reporting has launched a new partnership with Delta Capita – the latest development represents a key step for the group ahead of the Securities Financing Transactions 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 (SFTR) coming into effect.

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Back in September, NEX unveiled its plan to apply to become a trade repository for the SFTR, which will come into effect in 2019. The deployment of a focused reporting solution will help support its existing client base. In particular, adding the SFTR trade repository and solution to its already robust Global Reporting Hub will provide clients with an end-to-end solution for the securities lending and repo markets.

The partnership with Delta Capita will provide consulting and specialist advice to key clients ahead of SFTR. Collin Coleman, Head of NEX Regulatory Reporting, commented: “SFTR will require clients to report an unprecedented level of data given that many securities and finance transactions have significant durations, complex lifecycle events and diverse collateral options."

NEX Regulatory reporting opted to partner with Delta Capita, given the success of its Securities Finance and Collateral Management Practice. On its part, Delta Capita has to date successfully assisted tier-one banks and large Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term clients with their MiFID II implementation projects.

To this end, both NEX Regulatory Reporting and Delta Capita will work alongside each other to advise clients on the data requirements for securities finance transactions. This includes not only regulatory health checks but also an ongoing battery of advisory checks in hopes to foster greater efficiency surrounding the regulatory shift.

“Delta Capita is the ideal partner for NEX as their deep understanding of securities finance and collateral management processes and technology will support the development of our cloud-based reporting solution and aid client onboarding,” he added.

NEX’s SFTR agenda is still pending the issue of the final technical standards from ESMA. As such, the group will aim to deploy its existing regulatory reporting technology for EMIR, MiFID II and other international regimes to meet the complex requirements of SFTR.

The accord with Delta Capita represents an important development for both groups as a combined effort will allow for an SFTR solution that is uniquely positioned to a growing industry demand in both the securities lending and repo markets.

“A natural extension of the regulatory support we currently provide to our clients, we’re pleased to partner with NEX Regulatory Reporting to help clients comply with the impending regulation but also to explore how SFTR data can be utilised for business advantage,” explained Jonathan Adams, Head of Securities Finance and Collateral Management Practice at Delta Capita.