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
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.
The SFTR solution will also offer participants turnkey (i.e
complete, ready to operate) connectivity to trade
"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,
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."