SFTR: market still needs critical data

Author: Olly Jackson | Published: 11 Jan 2019

Much of the information needed to complete the data fields of the upcoming Securities Financing Transactions Regulation (SFTR) is not readily available today, igniting fears that the regulation could be just as onerous as Emir and Mifid, with only a year to go before implementation.

Val Wotton, managing director at DTCC said that as much as 40% of the data needed to complete these fields is not currently available. In fact, the number of data fields the regulator requires to be completed under SFTR – 140 – is significantly more than Emir, which has 129 fields, and Mifid, which is in the region of 70.

Smaller firms fear that the upcoming Securities Financing Transactions Regulation (SFTR) will be expensive and difficult for them to comply with, favouring those with sizable implementation teams. Industry sources have told IFLR that the regulation is expected to affect repo flows and counterparty numbers in the future.