CCP Reporting

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Status: Best Practice Finalised, Last Updated: 26/04/2021

Question:
Should CCP-cleared SFTs be reported at a position or a transactional level?

Best Practice:
Investigations conclude that no CCPs are doing position reporting, as they cannot technically meet the requirements; because CCPs net after novating, whereas position-reporting requires netting prior to novation.

CCPs do not replace the individual contracts and UTIs with a new single contract and UTI. Hence, based on the above view by ICMA, members should not adopt the option of position-reporting for CCP cleared securities lending and repo SFTs.

When discussed, active participants confirmed that CCP SFTs should be reported at transaction (TCTN) and not at a position (PSTN) level.

Practitioners are advised to speak to their trade-flow service provider, therefore; Equilend, Pirum or Eurex (F7) for clarification. (SFTR-167)