IHS Markit has partnered with securities finance post-trade vendor Pirum to build a reporting solution for SFTR.

The new tool will combine Markit Securities Finance’s data capabilities with Pirum's post-trade reconciliation technology, resulting in a fully hosted, end-to-end service to help firms report trades.

SFTR requires EU counterparts participating in securities finance transactions, including securities lending agreements and repos, to report their transaction details to a registered trade repository.

At a minimum, reporting must include the details of the parties involved in a trade, principal amount, currency, collateral assets, repo rate, lending fee, margin lending rate, haircut and maturity date. 

Both firms claim the service, set to launch later this year, will enable market participants to lower the cost and operational burden of complying with the regulation.

Pirum specialises in securities finance and already handles large amounts of lending and borrowing data and is currently building solutions for market participants to comply with SFTR.

IHS Markit revealed part of its strategy SFTR strategy at the end of 2016,  saying it had the "pedigree and relationships" to help the industry meet the rapidly approaching SFTR reporting challenge.

The company aims to set an "industry wide data standard" which provides the foundation needed to reconcile trading activity down to the UTI and LEI level of granularity.

“By partnering with Markit Securities Finance, we can provide a seamless, end-to-end solution, with unparalleled market coverage, and ultimately reduce customers’ overall costs,” said Ben Challice, chief operating officer, Pirum.

Pierre Khemdoudi, managing director of Markit Securities Finance, added: “Pirum System’s best in class securities finance post-trade reconciliation and IHS Markit’s proven track record in delivering industry wide regulatory reporting solutions ideally position us to build this unique service.”