SFTR Reporting Regime Goes Live for Sell-Side Firms

Banks, investment firms, CSDs and CCPs started reporting securities financing transactions to approved trade repositories on Monday. 

The EU has gone live with phases one and two of SFTR (Securities Financing Transactions Regulation) reporting.

Phase one was deferred in March in light of Covid-19 disruptions.

From Monday (13 July), banks, investment firms, CSDs (central securities depositories) and CCPs (central counterparties) have started reporting securities financing transactions to approved trade repositories.

The trade repositories validate and reconcile the reports and pass the data on to regulators.

“Some issues remain in areas such as the reporting of lifecycle events and the reconciliation process, these will only be resolved once the industry has undergone practical implementation and the buy-side goes live in October,” said Val Wotton, Managing Director of Product Development and Strategy at DTCC, which operates one of the approved trade repositories.

“As a result, the go-live date is not the end of preparation for the sell-side community, but rather the beginning of the next phase in SFTR implementation.”

> ALSO READ: SFTR: An Opportunity to Upgrade, Automate (17 Jun 2019)

ESMA (European Securities and Markets Authority) said it has so far not identified any major disruptions in the functioning of trade repositories, but that it will continue its monitoring and engage with market participants to clarify any remaining issues and resolve shortcomings in the quality of data provided by reporting entities.

“As with any new reporting regime ESMA expects that issues will be identified in the first months following go-live, in particular as reporting systems continue to be improved and stabilised,” ESMA said.

Under the remaining two phases, funds, insurance companies and pension funds will start reporting from 12 October; and non-financial  counterparties from 11 January 2021.

To Top