Delta Capita secures SFTR compliance contracts in UK and US

26 May 2020 3 min. read

Delta Capita has secured large contracts with UnaVista and The Depository Trust & Clearing Corporation.

In the United Kingdom, UnaVista, London Stock Exchange Group’s regulatory reporting platform, has teamed up with global consulting firm Delta Capita to help firms meet the requirements of the Securities Financing Transactions Regulation (SFTR).

Europe’s soon to go-live SFTR regulation mandates financial services institutions, and later on non-financial institutions as well, to report SFTR transactions. Testing prior to regulatory reporting go-live is one of the most important aspects of preparation, as failure to test properly can lead to more breaks, operational delays and potential sanctions.

UnaVista has teamed up with Delta Capita to provide its clients with access to Delta Capita’s standardised SFTR data test pack. The pack provides users with a comprehensive model of life-cycle test scenarios, events and validation rules; all traceable to ESMA’s RTS and ITS (approximately 5,000 field level tests and 240 test events), trade and reference data t needed to test and a peer group database for benchmarking.

Delta Capita secures SFTR compliance contracts in UK and US

Developed with a consortium of large banks and agent lenders, the pack is available to both sell-side and buy-side firms. “Our SFTR data test pack is immediately faster, lower cost and more robust compared with firms doing it for themselves. And, its full traceability means it’s easier to defend to audit, compliance and to the regulator,” said David Field, head of the Securities Finance practice of Delta Capita. 

Meanwhile, in the United States, The Depository Trust & Clearing Corporation (DTCC), one of the globe’s leading market infrastructures for the financial services industry, has extended its cooperation with Delta Capita in the field of SFTR compliance. Last year, DTCC subsidiaries processed securities transactions valued at more than $2.15 quadrillion.

DTCC first collaborated with Delta Capita in 2018 with the publication of an SFTR industry paper, “Addressing the Industry Impacts of SFTR”. In 2019, DTCC worked with Delta Capita’s banking consortium, providing DTCC Report HubTM services in order to transform Delta Capita’s SFTR reporting data into the ESMA-required ISO 20022 XML format. 

Under the new contract, clients of DTCC’s Global Trade Repository (GTR) service for SFTR will be able to directly leverage Delta Capita’s buy-side data test pack, streamlining the testing process for DTCC’s GTR users to promote readiness for go-live. SFTR regulation mandates buy-side firms to report SFTR transactions from 12th October 2020, following the postponed go live of the regulation from July 2020. 

Commenting on the renewed cooperation, Valentino Wotton, a Managing Director at DTCC said, “As buy-side firms progress with preparations in order to meet forthcoming SFTR trade reporting requirements, testing will be an important milestone. We are pleased to be extending our partnership with Delta Capita and providing our GTR clients with an outstanding testing experience.”

Earlier this month, Delta Capita joined DTCC’s partner program as a Strategic Partner.