In the latest publication of the Journal of Financial Compliance (Henry Stewart Publications) our CEO and Founder, Laurent-Olivier Labeis (Leo), and Adrian Dale, Head of Market Structure, Digital & RegTech at the International Securities Lending Association (ISLA), explore SFTR and the future of regulatory reporting.
They describe SFTR as a “landmark step towards transparency” in securities financing markets. But as reporting requirements have evolved, complexity remains a major challenge for firms.
The paper explores key SFTR pressure points, including:
• lifecycle event reporting
• data granularity
• valuation mismatches
• schema constraints
• regulatory divergence
Leo believes Digital Regulatory Reporting offers a practical path forward, by emulating its widening adoption for derivatives reporting led by ISDA.
Powered by the Common Domain Model (CDM), DRR turns regulatory requirements into machine-executable code, helping firms reduce ambiguity and ensure the “same trade always produces the same predictable report”.
The paper sets out a phased route to adoption in securities finance, with market-led use of CDM and DRR helping to improve data quality and reduce the cost and complexity of compliance.