Case — NN Investment Partners | Asset management

Reduce systemic risk in securities lending (SFTR).

NN Investment Partners, headquartered in The Hague, the Netherlands, is the asset manager of NN Group N.V., a publicly traded company listed on Euronext Amsterdam. NN Investment Partners manages approximately EUR 293 bln in assets for institutions and individual investors worldwide, servicing clients across Europe, North America, Latin America, Asia and the Middle East.

What was the problem?

The Securities Financing Transactions Regulation (SFTR) is a body of European legislation for the regulation of securities lending and repo trading. The objective is to reduce systemic risk in securities lending and get more visibility over collateral re-use. Together with NN Investment Partners, Varrlyn identified the requirements for SFTR reporting and determined the exact product scope. As soon as the data sources were identified, the data could be extracted and provided to the outsourcing party, which was able to generate the required regulatory reporting to the regulators.

Why did NN Investment Partners ask for Varrlyn’s help?

Varrlyn played a key role in the business analysis work to design and build the data extractions. The data had to be extracted from multiple systems, combined and formatted before it could be sent to the external outsourcing party. The external party also had multiple queries, which Varrlyn investigated and solved.

How did Varrlyn work together with NN Investment Partners?

The project, which lasted 4 months, involved 5 staff members of NN Investment Partners, and 1 Varrlyn team member.

Acount manager Martin Defauwes