Delta Capita and DTCC Collaborate on SFTR Testing
Delta Capita, the international business and technology consulting and managed services firm is collaborating with The Depository Trust & Clearing Corporation (DTCC), the post-trade market infrastructure for the financial services industry, to help market participants meet their Securities Financing Transactions Regulation (SFTR) trade reporting obligations.
Delta Capita’s banking consortium is creating a standardised SFTR industry test pack. Under this new collaboration, Delta Capita will make the test pack available to DTCC to test its own SFTR matching and reporting service prior to launch. DTCC opened user-acceptance testing with industry vendors on 30 August 2019.
Clients of DTCC’s Global Trade Repository (GTR) service for SFTR – who independently license the consortium’s test pack – will benefit from knowing the service has already been tested, reducing their own testing effort and costs and ensuring readiness for trade reporting. Furthermore, DTCC will make its data transformation services available to Delta Capita’s banking consortium to assist with the creation of trade repository (TR)-ready ISO 20022 SFTR reports.
David Field, head of securities finance practice at Delta Capita, says: “Our test pack will provide full traceability to the European Commission’s regulatory technical standards (RTS), the European Securities and Markets Authority (ESMA)’s guidance, and best practices across repo, sell/buy-back and stock borrow/loan.”
It will provide users with the test data, test instructions and expected results to conduct their user acceptance testing (UAT), and to test with their counterparts, trading venues, service providers, central counterparties (CCPs), tri-party agents and trade repositories. Consortium members will be able to benchmark their testing run and pass rates to highlight any areas for review and remediation.
Val Wotton, managing director, product development and strategy, repository & derivatives services (RDS) and collateral management at DTCC, says: “This new collaboration will provide a first-class testing experience for our clients. We are delighted to continue working with Delta Capita to ensure that our clients are well-prepared to meet their SFTR obligations.”