Cappitech and Intermoney Consultoría Partner on SFTR Compliance

Intermoney Consultoría, a subsidiary of the CIMD Group, has partnered with Israeli RegTech vendor Cappitech to help their clients expand the compliance coverage for the incoming securities financing transaction 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).

This collaboration also grants Intermoney’s customers wider access to Cappitech's reporting service, including MIFID II, EMIR, Best Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term, and RTS 27 & 28. It will also support MiFID II reporting for additional instruments that will be in scope when SFTR goes live.

Offered as a SaaS product, Cappitech solutions cater to financial firms such as brokers, banks, and asset managers to automate their trade reporting functions. The company now expands its presence to help Spanish and Portuguese institutions affected by the new regulation keep on top of their reporting requirements.

The new compliance requirements are fundamentally a data challenge, and thus Cappitech will provide their new partners to acquire the reporting software directly or to outsource reporting services to Intermoney, using Cappitech’s technology.

A soft go-live before SFTR deadline

Under the new rules, securities financing transactions such as lending and repo, pension and UCITS funds will have to start reporting in 2020. However, Intermoney and other firms are considering a soft launch prior to their deadline, and dealers are going to require pieces of information prior to that deadline.

Firms subject to SFTR will be required to report 155 data fields daily, including unique transaction identifier (UTI), legal entity identifier (LEI), and master agreement for each trade.

Commenting on the partnership, Joaquín Vázquez, Managing Director of Intermoney said: "In an environment in which regulatory reporting is increasingly consuming entities’ scarce resources, this alliance allows us to offer a best-in-class service at a lower cost of ownership for our customers.”

Ronen Kertis, CEO and Founder of Cappitech, added: "Working with Intermoney, who have extensive experience and long-standing client relationships, allows us to bring our award winning technology to the Spanish market. As with other markets, local financial services firms require integrated solutions that work across regulations and can easily assimilate new ones such as the soon-to-be-implemented SFTR, without adding complexity or excessive cost.”