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Key SFTR Reporting Requirements for Corporate Actions

Key SFTR Reporting Requirements for Corporate Actions

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TBC

Best Practice

- SFTR is a two-sided reporting requirement: both borrower (collateral provider) and the lender (collateral receiver) are required to report their side of the SFT to an approved trade repository (TR) on Trade Date +1 (T+1).

- All new SFTs, modifications of open SFTs and terminations of existing SFTs, must be reported daily. - Collateral is reported on T+1 or Value Date +1 (VD+1) dependent on method of collateralisation used.

- As part of the two-sided reporting obligation, a Unique Transaction Identifier (UTI) must be included by participants in their reports to the TRs. This value will be used by the TRs to match reports from each counterpart.

- Participants must also use Legal Entity Identifiers (LEIs) to identify their counterparts and a number of other parties involved in the transaction (e.g. Agent Lenders, CSDs, CCPs).

- For agency loans with multiple underlying principals, both borrower and lender will need to report each allocation to a principal, as an individual transaction.

- SFTR reporting must also include any collateral linked to the SFTs, including the LEI of the counterparty with whom the collateral was exchanged, and the master agreement under which it was agreed. (COAC-125 FOR ISLA REVIEW)

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