Unavista Closing SFTR Trade Repository, Next Steps?

The announcement of UnaVista exit from the SFTR reporting space is yet another twist in the regulatory reporting landscape. In the space of about 12 months, the marketplace has seen notable exits of critical regulatory reporting providers, including CME/Abide and Deutsche Bourse.

The decision by UnaVista will be the first SFTR TR to exit the space and now presents a challenge for clients to find a new trade repository solution by January 2022. This is a situation that IHS Markit knows very well, having been at the forefront of the CME/Abide exit, and helped dozens of clients navigate the complexities of moving trade repositories and vendors in a very tight timeline (also six months).

For clients of IHS Markit’s SFTR solution that report into UnaVista, the transition to a new TR will be seamless, transparent and at no cost to the client. As always, our objective is to ensure clients are insulated from regulatory changes, including any decommissioning of services.

IHS Markit is deeply committed to the regulatory reporting solutions business and has made some significant investments to expand the offering to support clients across global regulatory jurisdictions.

Specifically for the UnaVista SFTR decision, there are several immediate key challenges that those who are impacted by the announcement will have to overcome:

Sourcing alternative regulatory reporting solutions without negatively impacting current or future reporting needs

UnaVista clients will need to find a new SFTR repository and reporting process. Tremendous challenges come with this process including having to port Trade Repository data. For those clients that are  reporting directly to the UnaVista Trade Repository, clients may need to change from the format they are using, and work with a new vendor to ensure their previously used reporting processes and technical environments are understood so as to make a swift switch.

Finding a seamless way to port data to a new TR without compromising accuracy

For those who are now forced to find a new TR, porting the data correctly and without opening themselves to potential reporting faults and fines is a daunting task, exacerbated by the nuances of specific regulations. IHSM will work with UnaVista and other Trade Repositories to ensure a seamless transition for clients.

With every challenge comes a silver lining

While having to find a new regulatory reporting solution and TR service and then go through this migration process is likely to be challenging and resource intensive, it’s also an opportunity for firms to look at their reporting processes and implement improvements.

These may be related to accuracy and efficiency through increased consolidation of processes by, for example, transferring to using a single reporting hub for all reporting jurisdictions (EMIR, MiFID II, SFTR, ASIC, MAS, CFTC, SEC, Canada, HKMA).

It is also a key opportunity to consider the addition of new value-add services such as reconciliation, best execution, validation and eligibility.

Talk to us about how we can help port your data to a new TR or re-onboard your regulatory reporting.

About the author: Igor Kaplun

Mr. Kaplun serves as Global Head of Regulatory Reporting Business Development, S&P Global Market Intelligence Cappitech and is responsible for leading the expansion of the regulatory reporting capabilities globally. Mr. Kaplun has deep expertise in OTC derivatives, G20 regulatory reporting and post trade services. Prior to joining S&P Global Market Intelligence, Mr. Kaplun spent 11 years at CME Group, most recently as Head of the North America Trade Repository business. Earlier in his career Mr. Kaplun worked in market data, trade operations and support, product marketing and sales. Mr. Kaplun holds a Bachelor’s in Business Administration and Master’s in International Business from the University of Florida