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Securities Lending Market Report | June 2021

Exploring SFTR Data

Introduction >>> The use of pledge in securities lending is increasing

Following the first anniversary of the belated go-live of Securities Financing Transactions Regulation (SFTR), it
is interesting to study the new data we have available to us through the TR public data. This data is released
weekly by the Trade Repositories, who are responsible for collecting and maintaining records of SFTs from The volume of collateral reported under pledge agreements As the usage of the GMSLA pledge agreement increases,
participants under SFTR and is a representation of all reported positions from that week. appears to be increasing. Looking at data provided we should see these percentages increase as those
by DTCC for June 2021 we see 16.06% for EU and contract changes filter through the SFTR reporting.
This data allows us to paint a picture of the state of securities lending markets, in the context of what has been 14.39% for UK total reported collateral as under a pledge
reported under SFTR. Although there is work to do to improve the accuracy of this data, particularly around agreement, compared to 15.20% and 12.14% for January
volumes, we can still discover and measure some noteworthy trends. 2021 respectively. These figures are broadly in line with
ISLA has been working on the capacity to aggregate and measure the weekly TR public data file from three of the data from triparty agents.
registered trade repositories (DTCC, Regis-TR, KPDW), including the separate UK data from those registered in
the UK (DTCC). Along with data gathered from other sources, in this section we will discuss some of the trends
we are noticing within the data surrounding SFTR. With the withdrawal of UnaVista as an SFTR trade repository Fig 10 - DTCC Public Data
in January 2022, UnaVista public data has not been included.
DTCC & KDPW Public Data

18%
17%
16%
15%
14%
13%
12%
11%
10%
Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021

DTCC EU, KDPW DTCC UK

Due to data anomalies within the reported collateral value, Regis-TR data has not been included in
this graph. As data quality improves, we hope to include these datasets in later reports.