Great day yesterday at the Securities Finance Technology Symposium. SFTR dominated the discussions and here are10 key takeaways from the day
1. SFTR is a massive challenge, especially when it comes to data volume. Start early!
2. Expectation is that final draft will be confirmed within 8 weeks
3. You do not need the RTS to start look over data quality. First steps to take: gap analysis, enrichment, source system upgrades
4. See the regulation as an opportunity to enhance efficiency, and data quality – make strategic choices accordingly. Use SFTR as an opportunity to “clean the house”.
5. Cooperate and collaborate! Market driven cooperation will ease process of getting quality data to TR’s and will be a driver for success
6. Choice of build or buy, spend your resources wisely
7. Legacy architecture is slow and inflexible, use a partner that is agile and can adjust to new conditions with short notice
8. Don’t reinvent the wheel, live in your existing environment because the grass is not greener on the other side. The market will have to set the standards
9. Everything is expected to break at first, focus on the most important data points, e.g LEI and UTI. Learning from EMIR everybody knows the process to get high matching rates will be long and the 5th decimal of price will be irrelevant.
10. The earlier you start, the better the reporting is going to be in the end
To summarize, don’t wait for the RTS to be finalized, SFTR is undoubtedly coming and there is no need to wait. We strongly believe collaboration and cooperation is key for a successful implementation, so feel free to contact us if you have any questions.