The European Securities and Markets Authority (ESMA) has published further technical details for the reporting of Securities Financing Transactions (SFTs) as required under the SFT Regulation (SFTR).
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The publication includes the validations rules applicable to SFTR reporting as well as the XML schemas reporting entities should use, including: counterparty and TR data exchange; intra-TR data exchange; and TR to authority data exchange.
SFTR, which aims to mitigate risks in shadow banking and increase the transparency in securities lending and repo, will be introduced in a phased approach starting with credit institutions, investment firms and relevant third country firms on 13 July 2020 (previously 13 April).
The regulation introduces new transaction reporting obligations and will require firms to report their SFTs to a trade repository registered by ESMA.
Under the SFTR, both parties to an SFT need to report new, modified or terminated SFTs to a registered or recognised trade repository (TR), including the composition of the collateral.
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To date, SteelEye has launched solutions for record keeping, trade reconstruction, transaction reporting, trade and communications surveillance, best execution reporting, transaction cost analysis and advanced analytics for regulations including MiFID II, EMIR, Dodd-Frank, SMCR and MAR.
