Delta Capita launches test partnership for securities finance reporting
Delta Capita, the UK-based financial services IT consultancy, is collaborating with data vendors IHS Markit and Pirum to standardise testing for securities finance markets reporting.
In May, Delta Capita formed a consortium of brokers and agent lenders to create a test pack for the European Securities and Markets Authority's Securities Financing Transactions Regulation (SFTR), which comes into force in April 2020 and is aimed at enhancing transparency of securities financing markets. IHS Markit and Pirum will make the test pack available to their clients to support user acceptance testing (UAT) and provide feedback to the consortium.
The partnership hopes that the test pack – which covers 227 securities finance trade scenarios and 54 different lifecycle events, such as a change in credit rating of the underlying security – will reduce costs for clients by ensuring that they are compliant with SFTR.
“It will provide users with the test data, test scripts and expected results they need to conduct their UAT and to test with their counterparts, trading venues, service providers, central counterparties, tri-party agents and trade repositories,” said David Field, Head of Securities Finance at Delta Capita.
“Consortium members will be able to benchmark their testing run rates and pass rates to highlight areas of concern for review and remediation.”
Pierre Khemdoudi, Managing Director and Global Co-Head of equities, data and analytics at IHS Markit, added: “The securities finance industry will greatly benefit from the standardisation of testing as we continue implementing technology for SFTR reporting. By integrating Delta Capita’s testing within our SFTR solution, our common clients will be able to move forward with no additional effort, while being assured on the accuracy of the reporting.”