SimCorp SFTR solution goes live at Denmark’s ATP
ATP, Denmark’s largest public pension fund, has gone live on SimCorp’s reporting platform tailored around the Securities Financing Transactions Regulation (SFTR).
The pension fund goes live in time for the third phase of SFTR, which started rolling out in 2019.
SimCorp is supporting ATP with reporting for repos and buy sell-backs, tri-party repo collateral managed by Euroclear, and collateral re-investment.
The vendor says ATP can automatically submit SFTR reports across its full security financing business, without manual interventions.
Morten Holst Kruse, head of business systems at ATP, hails what he calls a “fast and fully remote” process.
“ATP has already seen the benefits of SimCorp’s SFTR solution in production, including high quality, automated reporting.”
Kruse lauds his firm’s new ability to integrate tri-party repo collateral and reporting of re-used collateral.
SFTR rules aim to increase transparency on the use as repos and securities lending transactions, and on the risks around entering collateral arrangements.
The third phase of SFTR applies to non-financial counterparties (NFCs).
In June 2020, the UK Treasury confirmed it would not on-shore the NFC aspect of SFTR due to Brexit.
“From early on, the industry understood the data challenges that SFTR would bring,” says Gernot Schmidt, product manager for regulatory solutions at SimCorp.
“It’s already clear that SFTR UK and SFTR EU will diverge sooner rather than later. Our offering saves clients the headache of dealing with this complex problem.”
In August 2020, SimCorp put its flagship Dimension solution on the cloud, signing a marquee deal with Microsoft.