Since the regulation went live in July, PGGM, which boasts assets under management of €252 billion (as of December 2019), processed more than 320 trades and 590 valuations.
All reports have been fully-automated, submitted and accepted by the trade repository (TR), with no manual intervention required, SimCorp says.
“We’re extremely pleased with the first month of the SFTR go live,” says Barry Vrijssen, manager operations at PGGM. “So far we have been able to report to T+1 requirements by 12pm each day, with 100 percent TR acceptance rates and without any additional manual work.
“As regulations go, the collaboration with SimCorp has made SFTR compliance a much simpler process and almost a non-event of going live.”
The Dutch fund was a participant in SimCorp’s SFTR pilot scheme in October 2019 and among the first to go live on the platform ahead of the regulation’s implementation.
Carsten Kunkel, head of SimCorp Global Center of Regulatory Excellence, says: “We are delighted that PGGM has realised the vision that we had in mind, when creating SimCorp’s SFTR reporting solution.”
He adds: “Additionally, we can now see in action, the value of fusing together cloud technologies and managed services. This goes beyond cost efficiencies, enabling firms to concentrate on achieving alpha. A vital advantage in today’s buy-side industry.”
PGGM’s use of the SFTR platform builds upon an existing relationship with SimCorp, which was also involved in its aim of becoming the first pension fund in Europe to clear repos through Eurex.
The SFTR solution
SimCorp, in collaboration with regulatory compliance platform deltaconX, launched its SFTR reporting solution for buy-side clients, ahead of the original April go-live.
According to SimCorp, the platform offers an end-to-end reporting service for SFTR via SimCorp Dimension, the firm’s flagship platform, with a standardised integration to deltaconX, to manage the flow of reporting to TRs, with software-as-a-service technology to promote efficient and fast onboarding.
SimCorp notes that by being a cloud-based solution the platform benefits from continual monitoring and seamless upgrades.
SimCorp says Dimension’s integrated Investment Book of Record (IBOR), which delivers users a trusted golden source for all reporting data.
Built around the operational data available in its IBOR, SimCorp’s SFTR reporting solution sees users benefit from the same highly-automated daily report processes, it has in place for repo and security lending trading and collateral operations, SimCorp explains.
Additionally, clients can use SimCorp’s IBOR for complete validation of trade data against the regulatory rule set, and a consistent overview across all business processes.
One IBOR for both operations and reporting allows users to focus resources on SFTR-related changes concerning only data management processes, instead of technical aspects of the regulation, especially the sourcing of new data for the 155 fields required by the regulation, SimCorp notes.