SFTR overview

SFTR is the Securities Financing Transactions Regulation published by the European Commission with the aim to regulate any transaction where securities are used to borrow cash, or vice versa - so-called Securities Financing Transactions (SFTs). This regulation is part of a globally coordinated effort initiated by the Financial Stability Board (FSB) to reduce financial stability risks from shadow banking activities.

The regulation will require companies to report their SFTs to an approved EU trade repository. The SFTR went into force on 12 January 2014 and the reporting obligation is expected for 2019. ESMA is currently working together with NCAs and the ESCB on draft Regulatory Technical Standards, which have to be delivered to the Commission by 13 January 2017.

The proposed regulation has a very broad scope and would cover SFTs conducted by:

  • All EU financial and non-financial counterparties
  • Including all branches irrespective of their location
  • Third country entities which need to report, if the SFT is concluded by an EU branch

The proposal also identifies UCITS funds and AIFM funds as being subject to the regulation.

REGIS-TR will be providing services to market participants who need to meet this regulatory reporting obligation. This new offering will build further on the well-developed services REGIS-TR customers know us for today - our customers are already benefiting from our EMIR and FinfraG trade reporting services.