ESMA has today published its first set of Questions and Answers relating to reporting under the Securities Financing Transactions Regulation (SFTR).
The purpose of this Q&A is to provide greater clarity to market participants on how to comply with their reporting requirements under SFTR. The Q&A includes clarifications on how reporting of certain business events should be performed, such as:
- Reporting of fields related to time and applicable calendars
- Reporting of settlement legs
- Reporting of SFTs collateralised initially at transaction and then at net exposure level
- Reporting of SFTs concluded off venue and cleared on the same day
- Reporting of zero collateral for margin loans
The set of Q&A complements ESMA’s guidance on reporting under SFTR and is aimed at trade repositories and at entities that have a reporting obligation under SFTR.
ISLA will be reviewing the ESMA publication with member firms and reconciling to ISLA best practices. If you have any initial comments, or you would like to raise any items that require discussion in our SFTR Working Group, please email firstname.lastname@example.org