Cappitech, a leading provider of regulatory reporting and intelligence solutions for the financial services industry and IHS Markit, a world leader in critical information, analytics and solutions, today announced an alliance to deliver the IHS Markit Securities Financing Transactions Regulation (SFTR) solution.

The IHS Markit SFTR solution will integrate Cappitech’s award-winning platform CapptivateTM to offer a best-of-breed solution that will meet the industry’s SFTR trade reporting needs by automating and streamlining transaction reporting to trade repositories for all securities finance instruments. It will also support out-of-the-box MiFID II reporting for additional instruments that will be in scope when SFTR goes live.

Pierre Khemdoudi, Managing Director & Global Co-Head of Equities, Data and Analytics at IHS Markit, said: “We look forward to leveraging Cappitech’s technology to deliver a regulatory reporting solution that can help manage the comprehensive requirements of SFTR. We believe our combined expertise will further automate complex data management processes through a highly scalable, cost-effective and unified platform.”

Ronen Kertis, CEO and Founder of Cappitech, said: “We’re delighted to be partnering with IHS Markit to power their industry-leading SFTR solution. SFTR reporting is a natural extension of our platform, which already covers the majority of transaction reporting requirements globally. Our mission at Cappitech is to ease the regulatory reporting burden by offering clients next-generation technology that allows them to both comply and gain a competitive advantage.”

Firms subject to SFTR, a regulation that will come into effect in April 2020, will be required to report 155 data fields daily, including unique transaction identifier (UTI), legal entity identifier (LEI) and master agreement for each trade. In alliance with Cappitech, the IHS Markit SFTR solution will provide the industry with a one-stop-shop for all aspects of SFTR trade reporting from data aggregation, validation, enrichment and normalisation to reconciliation and UTI sharing prior to trade repository reporting.

Since 2017, leading financial institutions, Pirum Systems and other partners have been working with IHS Markit to develop an SFTR reporting solution. It will streamline trade reporting to repositories for all securities finance transactions including repo and reverse repo agreements, securities and commodities loans, prime brokerage margin lending and collateral re-use.