Securities Financing Transactions Regulation (SFTR) compliance made easy

The client offers an automated, integrated solution to its clients in the European Union (EU) for complying with the Securities Financing Transactions Regulation (SFTR). Effective in recent years, SFTR requires timely and detailed reporting based on multitudes of data, systems, collateral, and lifecycle events. The voluminous data is captured from hundreds of millions of daily transactions made to multiple trade repositories registered by the European Securities and Markets Authorities (ESMA). Non-compliance at any stage is risky, potentially very costly, for all trade counterparties, i.e., broker-dealers, banks, asset managers, institutional investors.

Experienced in diverse technologies, big data, and capital markets, team Iris developed a streamlined, end-to-end data reporting platform with complex trade matching and monitoring systems. Improving speed, accuracy, and flexibility, the new architecture supports high trade concurrency and acceptance rates with parallel processing of millions of transactions. The delivered solution also enabled optimal load balancing and matched the reconciliation at the trade repository. Built with microservices to accommodate future scalability, standardization, data quality, and security requirements, the system implemented functional enhancements. A Unique Transaction Identifier (UTI) subsystem was also developed for sharing and matching counterparty transactions, enabling plug-and-play setup for new repositories, and supporting any changes in outbound or inbound data report formats required by ESMA or clients. Improved dashboards and search pages helped the end-users in better configuration and tracking of their transactions.

The nimble delivery and successful roll-out of the new SFTR platform delivered the desired strategic competitive advantage to the client for maintaining its EU market leader position. The consolidated solution also helped in:

• Generating additional revenue from extending the new reporting services to 17 firms.
• Beating the industry benchmark (~91%), achieving a higher transaction acceptance rate (~97%), and match reconciliation at the trade repository.
• Supporting a high throughput of 6 million transactions per hour which is scalable up to 10 million.