Securities Financing Transaction

Risk and Regulatory Compliance

Business Problem

Build a System to report SFT’s such as securities lending, repos, buy-sell backs and margin lending and associated collateral to an EU registered repository. A securities financing transaction includes:

  • A repurchase transaction.
  • Securities or commodities lending or borrowing.
  • A buy-sell back transaction or sell-buy back transact.
  • Dedicated services interact with the Data Sources to fetch data from the data sources and version them.
  • A margin lending transaction.

"Transaction Reporting for European Union regulation that aims to reduce systemic risk."

Business Solution

  • Atyeti SFTR reporting implementation spans across Stock loans, Repo and Margin Lending asset classes
  • As this is a bank wide regulation the solution included building out of a new Regulatory reporting engine (RRaaS).
  • This was built across both the Banks IB and IWM divisions.

Technical Solution

  • Hybrid Cloud Data Sync: Sync between private cloud and Azure (feeds ingestion, data transfer, storage,validation).
  • Data Processing: Auto-scaling cluster is used for batch processing utilizing Azure PaaS offerings.
  • Identity Management: Implementation of Centrify, Azure AD, and Azure Key Vault.

Result : Meeting Regulatory deadlines

  • Atyeti SFTR solution is now processing full message volumes from all source systems.
  • The Atyeti SFTR solution is now in production (Feeding direct to DTCC).
  • The Atyeti SFTR reporting engine is processing full message volume from all source feeds.
  • So far 500K+ messages are reported on a daily basis with a 93%+ ack rate with 13M messages in May 2020.