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.”

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