Six Months To Go To SFTR For Dealers, One Year For Asset Managers - Comment From DTCC

Val Wotton, Managing Director, Product Development and Strategy, Derivatives and Collateral Management at DTCC, said –

“Today marks six months until the introduction of the Securities Financing Transactions Regulation (SFTR) for the broker-dealer community and a year until the implementation date for the buy-side/asset managers. While the broker-dealers have made good progress in their readiness for SFTR implementation, the smaller and medium-sized asset managers have much further to go in their preparations in order to be compliant in time.” 

“Further, for those buy-side firms that lack the resources to build and manage technology for their own transaction reporting, delegated reporting – where the asset manager outsources its reporting to the dealer community – is an attractive proposition; however issues related to this have emerged around areas such as collateral reuse. This is why buy-side firms need to prioritise SFTR readiness now, to ensure that they have ample time to implement the optimal model for their needs, which may include assisted reporting, whereby service providers help buy-side firms to fulfil their obligations while easing the burden for dealers.”