09 November 2017
Reporter: Jenna Lomax

Nex to apply for SFTR TR status

Nex Regulatory Reporting has applied to become a Securities Financing Transactions Regulation (SFTR) trade repository.

Depending on the issuance of the final technical standards from the European Securities and Markets Authority (ESMA), Nex aims to launch a dedicated reporting solution.

If its application is accepted, Nex will add the SFTR trade repository and solution to its Global Reporting Hub to provide clients with an end-to-end solution for the securities lending and repo markets.

Nex promises to build and host the SFTR trade repository in the cloud and will connect to the BrokerTec and ENSO platforms to ensure clients can automatically transfer their transaction data to the SFTR trade repository.

SFTR was originally due to come into effect in Q4 2017, with a nine-month phase in period, however, the market anticipates that SFTR will now come into effect during Q2 2019.

Currently in review with the European Commission, ESMA is expected to release the final draft technical standards within the coming months.

Nex Regulatory Reporting application comes just weeks after Nex Optimisation promoted Ken Pigaga to CEO and Nex Group achieved a 30 percent increase to its EU repo activity in October, compared to the same time last year.

Pigaga said: “While we await the final technical standards from ESMA, we have begun to put the building blocks in place for an SFTR solution and trade repository which will not only support our existing client base within Nex, but also the wider securities lending and repo markets.”

“It’s important that service providers and clients alike begin to prepare for the impending regulation now, to avoid the last-minute rush for compliance that many in the market are currently experiencing ahead of MiFID II.”

Collin Coleman, head of Nex Regulatory Reporting, added: “While most markets are used to a degree of regulatory reporting under EMIR, MiFID I and in now preparing for MiFID II, securities lending has to date been an unregulated market and so the introduction of SFTR will impact many global and regional banks and the buy side.”

“Pending detail on the regulatory technical standards, we look forward to launching a complete SFTR solution and providing direct reporting access to Nex’s BrokerTec and ENSO clients.”

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Hedge funds continue 2017 run
23 November 2017 | Madrid | Reporter: Drew Nicol
Global AUM of hedge funds rose 24 percent to $3.2 trillion in the past two years, according to data captured by IOSCO’s latest market survey.
Goldman Sachs appointed by Thrivent for agent lending
23 November 2018 | Minneapolis | Reporter: Jenna Lomax
Thrivent Financial has appointed Goldman Sachs as it new lending agent
ICMA maps repo and cash bond operations
22 November 2017 | Zurich | Reporter: Zsuzsa Szabo
ICMA has launched a free-to-read mapping directory for more than 80 technology solutions for repo and cash bond operations
FCA publishes MiFID II guide
22 November 2017 | London | Reporter: Jenna Lomax
The guide focuses on the regulatory regime in MiFID II for trading venues and data reporting services providers
Hedge fund industry reaches new highs in Q3
22 November 2017 | London | Reporter: Zsuzsa Szabo
The hedge fund industry has recorded strong performance in Q3 2017, after stumbling in 2016, according to Preqin
India reviews SBL position limits
21 November 2017 | New Delhi | Reporter: Zsuzsanna Szabo
The Securities and Exchange Board of India has altered its securities lending rulebook, following market calls for change
EU Commission opens consultation of SFTR TR fees
21 November 2017 | Paris | Reporter: Drew Nicol
UK-based trade repositories may be forced to shoulder additional third-party recognition fees to operate under EU regulatory frameworks post-Brexit, according to proposed EU Commission rules