European Commission Approves Draft Technical Standard for SFTR
After several delays earlier this year, the European Commission has finally approved the draft technical standard (RTS) for SFTR. The European Parliament now have up to six months to scrutinize the legislation, which has been changed from the previous three-month suggestion. That means that the regulation will be published in the official journal by July 1, 2019 at the latest. First in line to start reporting are Credit institutions and Investment firms, which will be one year after the publication, followed by a phased-in approach for other market participants in scope.
The uncertainty around the RTS approval have led many firms to put their SFTR projects on hold and firms may now feel a greater sense of urgency to implement SFTR. If not already begun, firms should immediately start reviewing readiness for SFTR implementation and allocate budget for next year.
To successfully meet the SFTR obligation, it will be particularly important to resolve the data sourcing and reconciliation challenges. As transaction reporting obligations continue to increase with the rollout of SFTR, it is becoming more imperative than ever for firms to take a strategic approach and adopt automated solutions that extend across multiple regulations.
Did you know that there is a 30% overlap between EMIR and SFTR?
Read our white paper on SFTR to learn more about the challenges SFTR bring.
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