ATP, Denmark’s largest pension fund, has selected SimCorp for support with EU and UK regulation that makes securities financing activities, such as stock lending, more transparent.
SimCorp said it had also gained other clients for its system that helps asset owners and managers deal with the SFTR regulation.
SFTR – the Securities Financing Transactions Regulation – implements recommendations following the Financial Stability Board review of the shadow banking sector after the financial crisis.
SimCorp boasts that it carried out the implementation fully remotely due to Covid-19 restrictions so that ATP could carry out test operations and maintain operational efficiency and business continuity in “already tumultuous market conditions”.
ATP uses the cloud service for reporting for repos and collateral re-investment, among other activities. The system further means ATP can automatically submit SFTR reports across its full securities financing business, without manual interventions.
Morten Holst Kruse, head of business systems at ATP, said: “What has been particularly valuable, is the ability to integrate our tri-party repo collateral and reporting of re-used collateral, which efficiently consolidates the process for the business and provides a complete picture to the regulator.”
The EU’s SFTR has been adopted by the UK and SimCorp said its service covered both jurisdictions.
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