SFTR About



The Securities Finance Transaction Regulation (SFTR) aims to reduce risks by improving transparency in securities financing markets and forms part of the EU’s response to the policy proposals issued by the Financial Stability Board (FSB) in August 2013. It will require counterparties to report details on trades and collateral (including reuse) to a registered trade repository (TR). Managers of UCITS and AIFs are also required to disclose the details of the use they make of SFTs and total return swaps.

The European Securities and Markets Authority (ESMA) issued its final report on the technical standards for SFTR on March 31, 2017, and the European Commission adopted the RTS & ITS on December 13th 2018, leading to a projected live date of Q2 2020. The report details a total of 153 reportable fields covering securities lending, repo, buy/sell-back and margin lending.


Although the European Commission has adopted the RTS & ITS, the date of entry into force for the RTS remains a subject of debate. Nevertheless, what is certain is that the main challenge for market participants will revolve around the content and timing of the reporting requirements for trades and collateral. The reporting requirement is dual-sided and requires the provision of a unique transaction identifier (UTI) for each trade and a legal entity identifier (LEI) for the counterparts in the trade.

A mandatory reporting format has been proposed, which would require the inclusion of a comprehensive series of details throughout the lifecycle of the trade. Market participants will be confronted by the need to track, manage and report a large volume of data, some of which may be captured by upstream or downstream systems, creating a potentially costly requirement to upgrade current systems or build out to external sources.



We are working in partnership with Trax and in concert with industry bodies, clients, tri-party agents and TRs to provide an automated, consolidated, scalable solution that removes the necessity for manually intensive intervention from clients and provides transparency throughout the process.



For the majority, counterparties are currently recognised by internal codes, and LEIs are not stored in front-end systems. Lenders are challenged with disclosure of their underlying principals (beneficial owners) and the associated timing of that disclosure. The Agency Lending Disclosure (ALD) process as it stands will not facilitate timely reporting. A subsequent challenge for the borrowers is housing the data received from lenders.


Experiences under EMIR highlight the importance of a robust mechanism for generation and sharing of UTIs to support trade matching and reconciliation from initiation through to termination.


All new transactions will be required to have an execution timestamp. These can be generated at point of trade via NGT (EquiLend’s multilateral trading facility). Any off-platform trades require additional attention to ensure agreement within the alloted one-hour tolerance window.


Trades with known collateral are reportable on a T+1 basis. Where collateral is not known at point of trade, it is reportable on S+1. Agency structures with pooled clients collateralised with pooled collateral will need to be appropriately allocated and fully disclosed for onward reporting.


Unlike MiFID, all lifecycle events that impact any of the reportable fields need to be reported through to termination.


Market research, prepared by The Field Effect in its white paper “SFTR: Navigating the Challenge,” has indicated firms may have difficulty sourcing up to 40% of the required reportable data. Governing agreements and versions is one of the many challenges. For some, these legal agreements are centrally stored, but for many this is not the case.


For many, fragmented systems hold various elements of the required data set for reporting. Clients may be faced with the need to upgrade their current infrastructures to support reporting obligations.


Clients will need the ability to identify and capture all in-scope reportable transactions, recognising if they are reportable under SFTR (or MiFID).


Reporting requirements are phased in according to the type of firm. Investment firms and credit institutions go live on day one. Non-financial counterparts (NFCs) go live nine months later. Although NFCs are not required to report for the first nine months, they will still be required to provide beneficiary information and LEIs to their counterparts. UTIs will still need to be generated but are still reportable by just the in-scope party.


A Day in the Life (Securities Lending Times) How the joint EquiLend/Trax solution can streamline SFTR reporting - October 2018

Is Time Running Out? (Securities Lending Times) Why there needs to be a focus on how your vendors support you - October 2018

SFTR Activity Ramps Up (Markets Media) August 10, 2018

REGIS-TR to Collaborate With EquiLend and Trax on SFTR Reporting Solutions - August 2, 2018

DTCC Collaborates with EquiLend & Trax to Advance Securities Financing Transaction Reporting Processes - June 5, 2018

EquiLend & Trax on SFTR (Securities Lending Times) - May 15, 2018

EquiLend and Trax to Launch Interoperable Front-to-Back SFTR Offering - September 20, 2017

SFTR Solution


EquiLend and TRAX, the post-trade services engine of MarketAxess, are collaborating on a full front-to-back Securities Financing Transactions Regulation (SFTR) solution to support the industry in meeting their reporting obligations.
EquiLend’s expertise in the securities finance industry combined with TRAX’s regulatory reporting and repo trade confirmation heritage result in a comprehensive service covering all SFTR eligible asset classes.


Clients need to report to a chosen trade repository by T+1 both sides of a trade, any associated collateral, plus modifications throughout the lifecycle using a common UTI. They must also manage any exceptions in the reporting flow. Additionally, clients must deal with any reconciliation discrepancies flagged by the trade repository. The EquiLend and TRAX solution enables firms to meet regulatory requirements by using regulated trading, post-trade and reporting platforms to do the following:

As leading providers of trading, confirmation and reporting solutions, EquiLend and TRAX are ideally placed to offer solutions around Unique Transaction Identifier (UTI) generation, timestamps and lifecycle events to help firms meet their reporting obligation. EquiLend and TRAX offer a joint solution that allows firms subject to SFTR to obtain a pre-repository match to help ensure accurate reporting and efficient exception management processing.

The fully interoperable solution enables the onward routing of trades to the TRAX Insight engine, which (i) enriches the reports submitted by a client with reference data and (ii) sends the enriched transaction reports to certain trade repositories. The TRAX Insight engine captures and centralises reporting flows, enabling firms to manage exceptions through a single interface and to rely on TRAX’s rules engine to filter and enrich trades. Clients will also be able to benefit from delegated reporting.



Key Benefits of the EquiLend & Trax SFTR Solution
  • The EquiLend and Trax SFTR Insight Solution offers clients:
    • Expertise in securities finance and regulatory reporting space with access to largest Securities Lending and Repo community
    • ESMA-compliant UTI and Execution Timestamp at Point of Trade via NGT and point of matching via Post Trade
    • A complete reporting solution including enrichment, eligibility, break management either via Direct or Delegated Reporting
    • Message validation and counterparty field comparison pre-repository ingestion
    • A centralised view of MiFID and SFTR reporting
    • A customisable client dashboard, which includes MI reports and benchmarking
    • UTI Portal for industry wide sharing of UTI information
    • Insulation from future Regulatory/Repository change cost and development need
    • Aggregated reporting price benefit (subject to TR pricing structure)
    • Adherence to a common industry solution realizing matching efficiencies and contribution to a vendor aligned collective voice.
The Benefits of NGT for SFTR
  • ESMA-compliant UTI and execution timestamps auto-generated and shared at point of trade, the earliest stage for SFTR reporting
  • Loan allocations shared at point of trade, providing UTI and execution timestamps on underlying principal funds and beneficial owners
  • 100+ trading client base, offering maximum access to the securities lending and repo community
  • A fully automated front-to-back SFTR reporting solution: trades booked on NGT can be subsequently auto-enriched via SFTR Insight with relevant data fields and reported within minutes to the trade repository
  • Reconciliations on trades show an average break rate of less than 1% across the lifecycle for transactions executed on NGT versus a 35% break rate for transactions executed off platform



A Day in the Life (Securities Lending Times) How the joint EquiLend/Trax solution can streamline SFTR reporting - October 2018

Is Time Running Out? (Securities Lending Times) Why there needs to be a focus on how your vendors support you - October 2018

SFTR Activity Ramps Up (Markets Media) August 10, 2018

REGIS-TR to Collaborate With EquiLend and Trax on SFTR Reporting Solutions - August 2, 2018

DTCC Collaborates with EquiLend & Trax to Advance Securities Financing Transaction Reporting Processes - June 5, 2018

EquiLend & Trax on SFTR (Securities Lending Times) - May 15, 2018

EquiLend and Trax to Launch Interoperable Front-to-Back SFTR Offering - September 20, 2017

Next Generation Trading



Next Generation Trading (NGT) is a multi-asset class trading platform for the securities finance marketplace. Accessed through NGT’s intuitive, Web-based user interface or via full automation using our proprietary messaging protocol, NGT offers access to global securities finance trading to firms of all sizes. With tens of thousands of trades conducted on the platform around the globe each day, NGT offers unparalleled liquidity in the securities finance market. NGT’s strategic features increase trade-level transparency, improve workflow automation and generate efficiencies market wide.

  • Negotiation tools with real-time bid/offer workflow
  • Trading on screen or via automated messaging
  • Straight-through processing for trade decisions and bookings
  • Targeted Availability (TA): up-to-date, executable inventory
  • Indications of interest (IOI): market discovery tool
  • Borrower-to-lender and broker-to-broker trade flows
  • Flexible non-cash collateral communication
  • Streamlined static data setup and ongoing maintenance

Unified Comparison



Unified Comparison lets you interact with your post-trade system in completely new ways. Its flexible, automated workflow management will liberate break resolution, letting you choose precisely what you want to view and how you want to communicate with your clients. Unified Comparison is the nucleus for post-trade lifecycle management and a gateway into all the other PTS products available within EquiLend. By connecting to Unified Comparison, you will reduce downstream lifecycle noise and be positioned to adhere to future regulatory initiatives.


Fast connections for high performance
Intra-day One File connectivity allows for fast data transfer, ensuring you are instantly connected to all your necessary content

Reduces clutter
Unified Comparison is incredibly content rich, but with its dynamic filtering it allows you to focus on your key risk initiatives effortlessly. It aggregates the data so that you can get a more complete and succinct picture of all your client portfolios

Easy visibility
What is the best way to improve your settlement rates or reduce your P&L issues? Unified Comparison helps you structure your workload. Priority columns direct you to fix your most important breaks first

  • Supports all equity and fixed income products
  • Reconciles global pending trades to recognized industry standards
  • Customizable filters and columns catering for individual preferences
  • Multi-search capability to allow easy access to relevant data
  • Ability to normalize non-vanilla activity

Settlement Instructions Repository



The Settlement Instructions Repository offers an automated service for central storage of all settlement instructions. It is a product agnostic service which can facilitate the sharing of instructions across all markets.The flexible upload functionality and automated email alert notifications allow users to efficiently manage their instructions process. Managerial authorization of instructions and changes ensure that instructions are tracked for data integrity and compliance. Settlement Instructions Repository also integrates into EquiLend's Settlement Comparison service, enriching trade level details to your pending loans and returns.

  • A client uploads settlement instructions into the repository
  • EquiLend generates an email and approved users authorize instructions
  • Upon approval, EquiLend generates an email to notify counterparties of new instructions
  • Counterparties review instructions, update their proprietary system, and amend EquiLend status to “Confirmed”
  • EquiLend generates an email notification to both clients confirming the instructions
  • Instructions are managed in the repository for easy access and research

  • Utilize the repository across all markets and products
  • Centrally manage the settlement instructions process across organization
  • Receive email notifications alerting counterparties of all instruction updates
  • Conveniently store history of all instructions and changes
  • Facilitate callback process electronically
  • Instructions can be incorporated into Settlement
  • Comparison allowing clients to effectively compare contract details


Contract Comparison



Contract Comparison allows users to compare contract terms for US and non-US equities and fixed income contracts, identify discrepancies, and view and reconcile the breaks online. Comparisons can be performed on loan contracts, returns, recalls, and collateral records. Contract Comparison facilitates the Mark-to-Market process and the billing process by enabling users to identify and reconcile differences early in the life cycle of a trade.

  • Open contracts or contracts pending settlement are submitted by both counterparties at a pre-agreed time
  • Corresponding counterparty records are compared and discrepancies identified
  • Results are returned immediately after the matching algorithm is complete
  • Counterparties reconcile breaks by taking actions and using comments on the browser
  • Counterparties take appropriate actions in their proprietary systems to correct breaks

  • Contracts can be compared even if not traded on the EquiLend platform
  • Comparison process can run at one of several predetermined times or throughout the day
  • Corporate actions can be reconciled, or managed to avoid breaks by the Security Linker or Exclude Security functions.
  • Flexible exception rules accommodate differences in counterparties’ proprietary systems
  • Customizable tolerances eliminate false breaks due to rounding and small monetary differences
  • Security level aggregation with the ability to see lot level details
  • Customizable browser shows relevant fields in any order
  • A sophisticated matching algorithm ensures that breaks appear cleaner and more succinct
  • Public and private comments provide the ability to record notes on a break
  • Persistent actions and comments allow users to track break age and history
  • Customizable management reporting to review break trending and aging
  • Available through XLS file upload via the browser

Returns & Recalls



The EquiLend Returns & Recalls services provide an efficient, automated way for borrowers and lenders to send return or recall notifications. 

  • A counterparty initiates a return/recall for a specific contract using a unique EquiLend ID, or may issue a more general return/recall for one or more securities
  • The recipient may acknowledge the receipt of a return/recall via the EquiLend screen or through messages integrated into their prop system
  • EquiLend provides reporting and tracking capabilities to monitor return/recall status online

  • Initiate returns/recalls via the browser, XLS file uploads or messaging
  • Set system to automatically acknowledge the return/recall or have active control
  • Ability to bilaterally agree on customized cut-off times by market
  • Using an EquiLend ID, initiate a return/recall that is contract specific for both parties
  • Through a direct link to the DTCC ARMS hub, EquiLend clients can recall U.S. securities from non-EquiLend clients with whom they have transacted
  • Ability to return or recall all global equity and fixed income securities




EquiLend’s ALD service acts as a conduit for data transfer between EquiLend counterparties globally. It also provides secure and timely transfer of principal loan data as a facility for approving underlying principals. This enables the credit prequalification of principals on EquiLend ALD, which in turn permits clients to calculate daily capital adequacy on their proprietary systems.


Credit Prequalification
Borrowers must actively prequalify each principal lender with whom they will transact.

Daily Capital Calculation
Helps borrowers to perform regulatory capital calculations and credit exposure monitoring.

Comparison & Reporting
EquiLend produces comparison data with highlighted breaks. A selection of reports are available for review or download for the operations and credit groups.

  • Send or receive ALD files with all counterparties, even if they are not EquiLend clients
  • Deliver and receive daily position and activity files through the EquiLend platform
  • Account management tools include broker affirmations of new principal accounts opened by agent lenders
  • Flexible exception rules accommodate differences in client proprietary systems 
  • Persistent actions and comments allow users to track break history
  • Reporting displays lender contracts aggregated with totals
  • Exception reports highlight allocation and loan discrepancies
  • Compliant with SIFMA and ISLA standards
  • View the status of principals in the browser

Dividend Comparison



Compare dividend claims and payment details with Dividend Comparison, which highlights breaking information between two counterparties.

  • Files are submitted by both counterparties 
  • Claims are compared and discrepancies identified using a multi-step algorithm
  • Counterparties resolve breaks on the browser and messaging is sent back, which can automatically update a client’s proprietary system
  • Pre-advice functionality allows users to send claim payment details; alternatively, a client can send a one-sided file and the receiver can affirm the claim and payment details

  • Data delivery by browser entry, FTP or XLS file upload
  • Pre-advice offers payment instructions, which can be received by a firm’s proprietary system
  • Customizable tolerances by currency
  • Two-sided comparison or single file delivery with counterparty affirmation
  • Public and private comments to record notes on a break
  • Ages unresolved breaks prior to and post pay date
  • Reduces time spent manually reconciling & paying or making claims
  • History tab displays data from past runs
  • Get paid on time!




In many ways the automation of the post-trade life cycle has never been better. Contracts are more regularly reconciled. Intraday reconciliation goes beyond anything you may have previously imagined. But something happened as we ventured into this exciting new world—the billing process got left behind.

Our goal with EquiLend Billing was to engineer a complete end-to-end Billing experience utilizing the lightest and most compact process seen to date. That meant reimagining every step of the billing life cycle to make it easier for clients to recoup their revenue within the current billing month. The result is more than just a reconciliation product. It is a unique, flexible, integrated solution that allows clients to communicate efficiently. EquiLend Billing has all you need to create, distribute and reconcile your bills today.



Generate and distribute statements automatically.
Connect either through a standard billing file or leverage the existing Billing Comparison file. Billing statements are automatically generated and distributed on clients’ behalf to all their counterparts. The counterpart doesn’t even need to be an existing EquiLend client.

Reconciliation. Payments. Tracking. You’re covered.
Detailed, daily reconciliation of security breaks is a cinch. Use the interactive reconciliation functionality to resolve the discrepancies and agree the bill directly from the Billing screen.

All your life cycle events. One seamless product.
EquiLend Billing works seamlessly with Unified Comparison, allowing clients to easily transfer the reconciliation work already completed in Unified Comparison into EquiLend Billing.

  • Ability to create statements in both PDF and Excel with automatic distribution
  • Billing dashboard to monitor progress across all your global counterparts
  • Easy setup for faster implementation of service
  • Statements can be downloaded for reconciliation, printing and storage for audit records
  • Detailed reconciliation screen both at security and daily interaction level
  • Filters and Sorts on the browser help make the reconciliation process more efficient
  • On-screen visualization of outstanding payables and receivables
  • Offers direct access to historical break detail on Unified Comparison
  • Public comments provide the ability to record notes on a break

Mark-To-Market Comparison



Mark-to-Market Comparison allows users to compare mark values, prices and other loan details for cash and non-cash loans. Customizable tolerances and rules can be applied based on collateral currency and mark amount to auto-mark records. Mark-to-Market Comparison offers the ability to automatically submit Security Payment Order (SPO) charges directly from the screen to DTCC (for U.S. securities). Prices for the comparison can be sent by the client or automatically applied based on EquiLend’s pricing source.

  • OneFile is leveraged to generate marks comparison
  • A matching and comparison algorithm will highlight breaks on the old price, new price, quantity and mark amount that falls outside an agreed-upon tolerance
  • Matched and matched-within-tolerance records are returned to both counterparties in a standardized file, which can be integrated into a firm’s proprietary system
  • Items that fall outside the specified tolerance can be reconciled on screen in real time
  • Total mark value figures are agreed upon for cash collateral movements
  • SPO charges for matched and reconciled records are automatically sent to DTCC

  • Leverages OneFile
  • Processes cash and non-cash mark records
  • Flexible tolerances and rules may be applied for specific currencies
  • Easily reconcile in real time directly on the screens
  • Aggregated security-level view and lot-level detail
  • Ability to automatically submit Security Payment Order (SPO) charges directly from Mark-to-Market screen to DTCC
  • SPO charges stored online for 6 months with XLS file download available
  • Interactive comments allow client and counterparty to record notes on a break
  • Reconciliation results can be automatically integrated into a firm’s proprietary system
  • A customizable browser interface, filters and global actions facilitate a simplified online reconciliation process

Trade Match



Trade Match provides an automated way to compare pre-settlement, cross-product trades. It reconciles all the trade components of either the start or close leg of each trade type. Trade Match’s exception management reporting prioritizes the core pending settlement risk items, helping users to reduce fails and rectify trade economic discrepancies on a real-time basis. Built using the same technology as the Next Generation Trading (NGT) platform, Trade Match provides enhanced user flexibility and configurability. It is compatible to One File connectivity and allows users the ability to send multiple files throughout the day.

  • Both counterparties send in pending trade data across products for new loans and returns
  • EquiLend/BondLend run a comparison and display the exceptions, prioritizing high-risk events
  • Users reconcile breaks on browser
  • Clients can download the results in XLS from EquiLend/BondLend to update their proprietary systems

  • Global comparison of cross-product trade data
  • Central overview of pending settlement breaks
  • Exception reporting with specific focus on pre-pay, settlement, trade economic and dividend breaks
  • Configurable screens allow user to personalize view
  • Internal and public comments
  • Excel downloads
  • Reconcile easily
  • Simplified trade-level drill-down
  • Send files via MQ, FTP or XLS file uploads

  • Automated outbound files from EquiLend/BondLend for full STP
  • MIS reporting

Tri-Party Connectivity (RQV)



Tri-Party Connectivity allows collateral providers and collateral receivers to agree required values (RQVs) and send the agreed-upon figures to the tri-party agent. The service is available if both counterparties are using EquiLend’s Tri-Party Connectivity service or if only one client is using it.

  • Collateral receiver and/or provider submits RQVs to EquiLend
  • EquiLend compares counterparties’ values against each other and facilitates the resolution of discrepancies
  • When the values match or fall within a provider’s tolerance, EquiLend sends the figures on behalf of both parties to the tri-party agent
  • The tri-party agent sends response messages acknowledging receipt of the figures, which EquiLend processes to generate individual status updates on the screen
  • The collateral receiver and the collateral provider each submit their RQVs to EquiLend
  • Bulk submit RQVs via one XLS upload for all counterparties
  • Collateral provider submits aggregate value for a group of instructions; receiver determines breakdown by submitting values at individual fund leve
  • Receive response messages from the tri-party agent to know the real-time statuses of RQVs
  • Allegement messages with trade details displayed when a counterparty not using EquiLend is first to submit, so EquiLend clients can quickly and accurately respond
  • Collateral providers can set value & percentage tolerances on each instruction to facilitate comparison—not necessary to agree exact values
  • Receive alert if instruction sent to tri-party agent requires action

Post-Trade Suite


SFTR Solution

EquiLend offers a scalable, cost-effective, light-touch solution—the simplest solution in the market to meet the demands of SFTR

Unified Comparison

Flexible, automated workflow management—the nucleus for post-trade lifecycle management

Settlement Instructions Repository

Automated service for central storage of all settlement instructions

Contract Comparison

Compare contract terms for all global equities and fixed income contracts, identify discrepancies and view and reconcile breaks

Returns & Recalls

Allows borrowers to automatically return assets borrowed through EquiLend or using another trading method


Provides secure and timely transfer of principal loan data as well as a facility for approving underlying principals

Dividend Comparison

Easily compare manufactured dividend claims and transmit pre-advice for agreement on payment and reconciliation terms


Allows clients to post electronic bills to all counterparties, whether or not they are an EquiLend client

Mark-To-Market Comparison

Compare marks using customizable tolerances that can be adjusted based on collateral currency and mark amount

Trade Match

Provides an automated way to compare pre-settlement, cross-product trades

Tri-Party Connectivity (RQV)

Allows collateral providers and receivers to agree required values (RQVs) and send agreed-upon figures to a tri-party agent

EquiLend Clearing Services


EquiLend acquired Automated Equity Finance Markets, Inc. (aka AQS) and its associated middle-office and front-end software in July 2016. The acquired business and technology served as the basis for the newly launched EquiLend Clearing Services. In the short term, EquiLend Clearing Services will continue to operate the existing platform, including its trading and middle-office services. Meanwhile, EquiLend is developing a solution to manage centrally cleared transactions. EquiLend Clearing Services also has established a partnership with the Options Clearing Corporation (OCC) to offer direct connectivity to the OCC for central clearing of securities finance trades.
  • Offers seamless connectivity to OCC's Market Loan Program
  • Maintains books and records for all trades booked to the Market Loan Program
  • Provides connectivity to OCC for trade instruction and reconciliation
  • Allows trading access to marketplace, matching lender supply and borrower demand
  • Has regulatory oversight as a registered broker-dealer (Automated Equity Finance Markets, Inc.)
  • Has the backing of EquiLend, a long-standing and trusted technology provider in the securities finance market
  • Central point for all matched trades and trade lifecycle events
  • Enhanced middle office offering
  • Effective front-to-back solution
  • Minimized risks to OCC and its members
  • Efficient process based on member feedback
  • Support for a more robust Market Loan Program
  • Enhanced OCC recordkeeping capabilities