The Imperative for Change
As transaction reporting regulations have been introduced and repeatedly expanded over the past decade since the financial crisis, they have taxed firms’ internal operations, processes, governance and infrastructure. The lack of harmonized derivatives rules across jurisdictions has further complicated firms’ compliance challenges.
The market’s need for a suite of pre- and post-reporting services that can help alleviate the burden on in-house technology and staff – as well as increase operational efficiencies and drive down costs – first became obvious a few years ago. Staff were tasked with building and supporting complex systems to meet the periodically changing regulatory requirements of both derivatives and securities financing transaction reporting mandates.
From that point on, DTCC started to create a single platform to perform all pre-and post-transaction reporting tasks for clients, not only across asset classes but also across regulatory regimes. That platform is the DTCC Report Hub.
The first step in the DTCC Report Hub journey was to offer clients who were preparing to report under Securities Financing Transaction Regulation (SFTR) a way to help manage the data complexities of the mandate. In 2020 as the regulation was set to go live, DTCC successfully rolled out DTCC Report Hub for SFTR. The logical next step was to introduce the pre-and post-reporting capabilities for global derivatives reporting.