Finastra has released a new securities financing transaction regulation (SFTR) reporting tool aimed at supporting banks with compliance ahead of the April 2020 deadline

The tailored product has been developed upon Finastra’s existing regulatory reporting solution.

Michael Henssler, general manager treasury and capital markets, Finastra, commented: “Regulatory reporting is a vital but highly complex process for financial institutions. Many banks are still using manual, labor-intensive processes to report on regulations such as MiFID II and EMIR. 

“From April 2020, banks and investments firms will need to start reporting on securities financing transactions – a daunting task should they not have the right resources and technologies in place.”

The new product is hosted in Finastra’s private cloud; modern technology enables Finastra to supply the needs of banks, including automated trade reporting, on top of reducing time and costs associated with data capture and compliance.

Henssler continued: “By moving regulatory reporting to the cloud, as a managed service, we are enabling banks to report at speed, removing complex manual processes. 

“Those who chose cloud-based technology will be more prepared when it comes to new regulations and can free up resources to focus on new revenue streams.”

Titled regulatory-reporting-as-a-service, the solution is a single regulation tool that collects and checks transaction information.

This includes such information as: repurchase transactions, securities/commodities borrowing and margin lending agreements, from banks’ own or third-party systems. 

Virginie O’Shea, research director, Aite Group added: “Regulatory risks are minimised when data is securely stored in a cloud environment, and business value can be unlocked from combining data across the silos that exist in nearly every large capital markets firm. 

“Even regulators are using cloud environments for cross-industry data aggregation purposes. In an environment that is as global as capital markets, working with a strategic repository of reporting data is a key benefit as regulators in other jurisdictions may follow their peers in implementing similar compliance obligations.”