Six Broker-Dealers Select IHS Markit to Manage Questionnaires for Securities Financing Transaction Regulation

IHS Markit, a world leader in critical information, analytics and solutions, today announced that BofA Securities, HSBC, UBS and 3 other global broker-dealers will leverage Counterparty Manager: Outreach360 to manage standardized counterparty questionnaires for the Securities Financing Transaction Regulation (SFTR).

The questionnaires, generated by the International Securities Lending Association (ISLA) and the International Capital Markets Association (ICMA), enable in-scope firms to exchange counterparty requirements for SFTR transaction reporting. Using Outreach360, which connects the largest network of buyside and sellside firms, securities lenders and borrowers can seamlessly convey their unique requirements to multiple counterparties in a universal format.

“The data management requirements for SFTR reporting are massive, and by leveraging Outreach360 to prepare for transaction reporting, broker-dealers and their customers in securities lending and repo markets can share vital information with greater ease,” said Lansing Gatrell, managing director for risk and regulatory compliance at IHS Markit. “As part of our Counterparty Manager platform, Outreach360 helps firms manage the storage and distribution of regulatory and compliance data, which is particularly helpful given the scope of SFTR.”

“As we head into 2020, securities lending participants need to prepare for the daily obligations and counterparty responsibilities associated with SFTR transaction reporting,” said Adrian Dale, director of regulatory policy and market practice at ISLA. “To help firms communicate SFTR requirements with efficiency, the ISLA SFTR working group has drafted standardized questionnaires for bilateral and agent lender use. We support the use of these questionnaires throughout the market.”

Based on feedback from more than 15 banks, Outreach360 will support real-time updates to questionnaire responses and counterparty classification for SFTR. These updates can be automatically exchanged through an API feed, as well as services like the IHS Markit SFTR reporting solution.

Since 2017, IHS Markit and Pirum Systems have worked with leading financial institutions and other design partners to develop the IHS Markit SFTR reporting solution. The solution now has more than 60 design partners and can streamline trade reporting to repositories for repo and reverse repo agreements, securities loans and borrows, commodities loans and borrows, prime brokerage margin lending and collateral re-use.