IHS Markit has outlined its approach to SFTR – the next wave of regulation set to impact the securities finance business.

Like other tech and data vendors in the space, including Pirum and EquiLend, IHS Markit is aiming to use its analytical and statistical strengths to ease the upcoming reporting burden for clients.

From 2018, the EU regulation will force lenders and borrowers to report details securities finance transactions (SFTS), which include repos and stock loans.

Information on parties involved in a trade, principal amount, currency, collateral assets, repo rate, lending fee, margin lending rate, haircut and maturity date are all required.

The data will then be sent to a trade repository, giving regulators a clearer view of the market.

IHS Markit revealed part of its strategy this week, saying it has the “pedigree and relationships” to help the industry meet the rapidly approaching SFTR reporting challenge.

The company will offer a fully hosted data and reporting solution that will set an "industry wide data standard" which provides the foundation needed to reconcile trading activity down to the UTI and LEI level of granularity.

“This modular, fully hosted, solution leverages IHS Markit’s proven track record of delivering industry wide reporting solutions and our 10 years of partnership with the securities lending community," the firm's experts wrote in an online statement.

“Our network of data contributors represent $15trn of inventory held by over 120,000 underlying funds.