Discussion paper on draft RTS and ITS under the Securities Financing Transaction Regulation

Discussion paper on draft RTS and ITS under the Securities Financing Transaction Regulation

from 11 March 2016 to 22 April 2016

Details

The SFTR, published in December 2015, is the European Union’s response to the global initiative to bring more transparency to shadow banking activities. The new rules on transparency require both financial and non-financial market participants to report details of their securities financing transactions. Details to be reported include the composition of the collateral, whether the collateral is available for reuse or has been reused, the substitution of collateral at the end of the day and the haircuts applied.

The DP sets out proposals for implementing the reporting framework under the SFTR, including tables of the fields with the proposed data to be reported, and the registration requirements for those Trade Repositories (TRs) which want to accept reports on security financing transactions.

In line with the SFTR requirement to build on pre-existing infrastructures, operational processes and formats which have been introduced with regard to reporting derivative contracts to trade repositories, ESMA has developed its proposals by building on its experience with EMIR and other EU-wide reporting regimes in order to align reporting standards to the extent possible.

ESMA is seeking feedback from all stakeholders, in particular, from entities active in the repo, securities lending/borrowing and commodities lending/borrowing markets. It also particularly welcomes feedback from persons carrying out buy/sell-back and margin lending, TRs, central counterparties (CCPs) and central securities depositories (CSDs).  

Next steps

The consultation closes on 22 April 2016. ESMA will use the responses to its DP to develop detailed rules on which it will publish a follow-up consultation in the second half of 2016. ESMA shall send its draft rules for approval to the European Commission by 13 January 2017.

2 RELATED DOCUMENTS
Documents available for this Consultation
DateReferenceTitleDocument
11/03/20162016/356Discussion paper - Draft RTS and ITS under SFTR
11/03/20162016/356 Reply formReply form DP SFTR

Responses

Operations
Activity Institution Download
Global Legal Entity Identifier Foundation (GLEIF)
Deutsche Börse Group
BNY Mellon
Asset Management The Investment Association
Asset Management Union Asset Management Holding AG
Asset Management Amundi
Asset Management ASSOGESTIONI
Asset Management European Fund and Asset Management Association
Asset Management BVI
Asset Management Alternative Investment Management Association
Banking British Bankers' Association
Banking The Luxembourg Bankers' Association - The ABBL
Banking British Bankers' Association
Banking Loan Market Association
Banking ABN AMRO Clearing Bank N.V.
Banking German Banking Industry Committee
Banking Austrian Federal Economic Chamber, Division Bank and Insurance
Banking Deutsche Bank AG
Others FIA
Others AFG
Others Risk Focus Ltd
Others EFET (European Federation of Energy Traders)
Others Association for Financial Markets in Europe (AFME)
Others Trax
Others Markit
Others ISO TC68 AG2 Standards Advisory Group
Others Nordic Securities Association
Others International Securities Lending Association
Others Bloomberg LP
Others ICMA European Repo and Collateral Council
Regulated markets, exchanges & trading systems Abide Financial Limited
Regulated markets, exchanges & trading systems CME Group
Regulated markets, exchanges & trading systems LSEG
Central Counterparty (CCP) ICE Clear Europe
Central Counterparty (CCP) European Association of CCP Clearing Houses (EACH)
Central Securities Depository (CSD) Euroclear
Central Securities Depository (CSD) European Central Securities Depositories Association
Trade Repository KDPW SA
Trade Repository REGIS-TR