In other FinTech news, an SEC forum will focus on DLT, Danske Bank opens a portal, and the CME Group can operate in Amsterdam.
SEB Extends DTCC Agreement via Global Trade Repository
Swedish financial group Skandinaviska Enskilda Banken (SEB) has decided to use the Global Trade Repository (GTR) services of the DTCC to meet regulatory obligations under the Securities Financing Transactions Regulation (SFTR) that are likely to take effect in April 2020.
The decision is an extension of SEB’s relationship with the post-trade market infrastructure and services provider, officials say.
“SEB has a longstanding relationship with DTCC and is very satisfied with our cooperation,” says Petra Tigerholm, head of markets regulatory reporting, at SEB, in a prepared statement. SEB is based in Stockholm, Sweden.
“Right now, SFTR is a major focus area, so choosing the right partner to deliver this project was of the upmost importance to us. We look forward to working together to deliver regulatory compliance for ourselves and our customers,” Tigerholm adds.
To ease client adoption of the SFTR service, the DTCC recently “added data transformation services to its SFTR offering, providing a one-stop shop for clients’ reporting needs,” according to the DTCC. “In addition, we announced new partnership agreements with several technology firms, including Broadridge, EquiLend/Trax, FIS Global, IHS Markit/Pirum, Murex, RegTek.Solutions and SimCorp.”
The GTR service processes 40 million open positions per week, and more than one billion messages per month for over 100,000 entities — brokers, buy-side firms and corporates in seven jurisdictions across 35 countries, according to the DTCC.
More than 60 regulators around the world have access to GTR data, consistent with their regulatory mandates in each jurisdiction, DTCC officials add.
SEC Slates Forum on DLT for May 31 at D.C. Headquarters
SEC officials have announced that staff members will host a public forum focusing on distributed ledger technology (DLT) and digital assets on May 31, 2019, at the regulator’s headquarters in Washington, D.C.
“The forum is being organized by the agency’s Strategic Hub for Innovation and Financial Technology (FinHub) and was announced in connection with the launch of FinHub last year,” according to the SEC.
“FinHub is committed to active engagement with market participants on new financial technologies. The forum is the second such forum to be hosted by the agency, will feature panelists from industry and academia, and is designed to foster greater communication and understanding around issues involving DLT and digital assets,” according to the SEC’s announcement. “Panelists will explore such topics as initial coin offerings, digital asset platforms, DLT innovations, and how these technologies impact investors and the markets.
The Fintech Forum will be open to the public and webcast live via the SEC’s website, officials say. More information about the agenda and participants will be published in the coming weeks.
Danske Bank Deploys GAIN Data Portal
Danske Bank, the largest bank in Denmark, has implemented the GAIN Data Portal to “centrally source, monitor and optimize the bank’s reference data and snapped prices from a leading data provider,” according to bank and vendor officials.
The portal from AIM Software “is being rolled out across the Danske Bank Group as a centralized repository for raw vendor data,” officials say. “The application monitors and manages vendor data requests — both for bulk loads and for defined universes. The requested vendor data is stored in a centralized hub, where it is made easily accessible to authorized users and systems.”
The application has been deployed to facilitate “faster on-boarding of data to support new business cases, adherence to legal requirements, and the substitution of data sources,” officials say. The effort is also intended to help Danske Bank to achieve “significant cost savings by eliminating duplicate and wasteful requests.”
The bank intends to broaden this coverage with additional vendors.
“We are using GAIN Data Portal to efficiently source the data that we need and to ensure that we’re compliant with our vendor data contracts,” says Jacob Wahlers, group head of financial data at Danske Bank, in a prepared statement. “It provides us with complete control over new data requests, as well as transparent usage tracking at a user, account, business unit, and organizational level. The application will also allow us to achieve significant cost savings through sourcing optimization.”
“Building our own simplified version of this application in-house would have taken a year or more to achieve. With GAIN Data Portal, we have a fully productized and functionally rich solution that was up and running in a matter of days. The application is fully maintained by AIM Software and benefits from the input of a strong user community of customers,” Wahlers adds.
Danske Bank officials decline to answer any further questions about the deployment.
CME Group Receives Approval to Operate in Amsterdam
CME Group, which oversees many derivatives marketplaces, reports that its new legal entity, CME Amsterdam B.V., has gotten the approval from the Dutch Minister of Finance.
“The establishment of the new Amsterdam-based entity will ensure that CME Group’s BrokerTec and EBS venues and CME Regulatory Reporting services (formerly NEX Regulatory Reporting) can continue to service their EU27 clients, regardless of the outcome of the UK’s withdrawal from the EU,” officials say.
CME Group will transition the following businesses to CME Amsterdam B.V.: BrokerTec’s European Government Bond and European Repo businesses (under a new Regulated Market license); and on-MTF FX forwards and swaps (under a new MTF license), to maintain a single pool of liquidity, officials say.
BrokerTec’s UK Gilts and Gilt Repo businesses “and all other EBS businesses, will continue to operate with no change,” officials add.
In addition, CME Group will transition the CME Regulatory Reporting Approved Publication Arrangement (APA) and Approved Reporting Mechanism (ARM) trade and transaction reporting services for EU27 clients to CME Amsterdam B.V., “to minimize disruption and assist clients in meeting their MiFID II obligations,” officials say. “CME Amsterdam B.V. will operate alongside Abide Financial DRSP Ltd. (AFDL), which is authorized as an ARM and APA by the UK FCA and will continue to provide these services to UK clients.”
CME Amsterdam B.V. will be operational from 18 March 2019, officials add.
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