Key milestone reached with less than a month to go before first go-live date for securities financing transactions reporting
New York/London/Hong Kong/Singapore/Sydney, June 24, 2020 ‒ With the deadline for the European Securities Financing Transactions Regulation (SFTR) quickly approaching, The Depository Trust & Clearing Corporation (DTCC), the premier post-trade infrastructure for the global financial services industry, today announced that 250 clients have now committed to use the firm’s multi-award winning Global Trade Repository (GTR) service to meet their reporting obligations. This is an 80% increase in the total number of clients signed-up for the SFTR service since the beginning of 2020.
SFTR will take effect for banks, broker-dealers, agent lenders, CCPs and CSDs on 13 July 2020, followed by buy-side entities on 11 October 2020, and finally with non-financial counterparties on 11 January 2021. DTCC’s GTR service supports all product types that need to be reported under the SFTR regulation, including repo and reverse repo, securities and commodities lending and borrowing, sell/buy-back, buy/sell-back and margin lending and borrowing.
Val Wotton, Managing Director, Product Development & Strategy of Repository & Derivatives Services at DTCC, said, “We are very pleased by the increased adoption of our SFTR service, as major sell-side firms make their final preparations to comply with the regulation ahead of the July deadline. We are ready to help firms comply with the regulation on Day 1. While some technical issues remain, such as reconciliation processes and the reporting of lifecycle events, these can and will only be resolved when implementation begins.”
“For buy-side firms subject to the regulation, we encourage them to act quickly to address any remaining reporting challenges and complete testing to ensure readiness for the October implementation date. With the majority of leading global banks and agent lenders on the SFTR service, we will continue to work closely with market participants and the wider GTR community as the regulation takes effect.”
DTCC’s GTR service has steadily increased its user community on a global scale since the first major reporting obligations entered into force. DTCC’s GTR service has become the industry's trade reporting solution of choice for OTC and exchange-traded derivatives, serving approximately 80% of the global market. Its total client base stands at 5,294, with 67% of clients based in Europe, 21% in North America and 12% in Asia.
Users of DTCC’s GTR service can further simplify their trade reporting processes by leveraging DTCC Report Hub, a customizable suite of pre- and post-reporting data and reconciliation capabilities designed to offer a flexible toolbox for buy-side and dealer firms of all sizes, enabling them to select only the features they want to use. Today, 30 firms have signed on to leverage the Report Hub service.
With over 45 years of experience, DTCC is the premier post-trade market infrastructure for the global financial services industry. From operating facilities, data centers and offices in 15 countries, DTCC, through its subsidiaries, automates, centralizes and standardizes the processing of financial transactions, mitigating risk, increasing transparency and driving efficiency for thousands of broker/dealers, custodian banks and asset managers. Industry owned and governed, the firm simplifies the complexities of clearing, settlement, asset servicing, data management, data reporting and information services across asset classes, bringing increased security and soundness to financial markets. In 2019, DTCC’s subsidiaries processed securities transactions valued at more than U.S. $2.15 quadrillion. Its depository provides custody and asset servicing for securities issues from 170 countries and territories valued at U.S. $63.0 trillion. DTCC’s Global Trade Repository service, through locally registered, licensed, or approved trade repositories, processes over 14 billion messages annually. To learn more, please visit us at www.dtcc.com or connect with us on LinkedIn, Twitter, YouTube and Facebook.