AccessFintech Partners with SIX to provide CSDR Eligibility, Reference and Price Data
Firms join forces to solve a significant challenge in categorising CSDR eligibility, using SIX reference and pricing data on the AccessFintech platform.
Zurich, London, New York and Tel Aviv, 4 May 2021
AccessFintech and SIX announced today a partnership to provide Central Securities Depositories Regulation (CSDR) eligibility and penalty data to their joint CSDR customers, solving for one of the major CSDR challenges – the sourcing of eligibility data.
The CSDR settlement discipline, commencing in February 2022, presents measures to ensure efficient settlement of trades in the markets of the European Union. The forthcoming regulatory requirement introduces a mandatory buy-in regime and application of penalties. Furthermore, participants must gather, track and communicate a significant amount of information through the lifecycle of each trade. Trades that do not settle on time will enter the CSDR process and then require significant collaboration between the settling parties in order to comply with the regulation.
A key part of this process is correctly determining the CSDR eligibility parameters of each trade using multiple data points – a process that will be automated and streamlined using SIX-provided pertinent data on the AccessFintech platform, for use by sell-side and buy-side clients.
The partnership will provide the market with the ability to seamlessly identify CSDR eligible trades and instruments, determine the market value in order to calculate the cash penalties, cash compensation, potential buy-in risk, and create a reliable single source for necessary price and reference data between the CSDs and their participants.
Commenting on the partnership, Heiko Stuber, Senior Product Manager at SIX said:
“Financial market participants need to ensure they do not fall foul of CSDR when it comes into full effect in February 2022. The industry needs to be gathering the information needed to test the impact of settlement fails in a “CSDR-compliant” regulatory environment. Our partnership with AccessFintech will allow the visualisation and categorisation of the most up to date reference and pricing data. It will be a key factor for being compliant and a powerful tool for managing risk across the trade lifecycle.”
Boaz Zilberman, EVP of Business Development at AccessFintech added: “Our partnership with SIX is an important step for our clients who must work out precisely which trades are eligible using a set of identifiers, which we will model together with SIX. Having this additional vital insight is the final piece of AccessFintech’s complete CSDR lifecycle solution will enable the market to predict, track and manage CSDR risk and, communicate information, notices and actions, real time, across multiple stakeholders – all through a single interface, using our platform ecosystem.”
AccessFintech uses technology to evolve the financial industry operating model. Its aim is to transform the model to drive control, transparency, efficiency and collaboration across the whole financial ecosystem. The company has a self-service ethos, where risk is mutualized, and there is better, more enlightened decision-making across organizations and functions. It was founded in 2015 by a team of financial industry veterans with proven experience, creativity and expertise in driving efficiency and solving problems in the context of the global capital markets. AccessFintech has created and operates a unique network of financial industry participants, sharing data and collaborating on exception resolution of trades. The technology is designed in such a way that clients can quickly and easily adopt the service without significant resource allocation, enabling firms to control their risk management practices while increasing the number of services consumed. For further information, please go to AccessFintech.com or follow us on LinkedIn or Twitter.
SIX operates and develops infrastructure services for the Swiss and Spanish Stock Exchanges, for Post-Trade Services, Banking Services and Financial Information with the aim of raising efficiency, quality and innovative capacity across the entire value chain of the Swiss and Spanish financial centers. The company is owned by its users (121 banks). With a workforce of some 3,500 employees and a presence in 20 countries, it generated operating income of CHF 1.38 billion and Group net profit of CHF 439.6 million in 2020.