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

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Type of event
Consultation
Section
Post Trading
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.

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Global Legal Entity Identifier Foundation (GLEIF)
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Regulated markets, exchanges & trading systems Abide Financial Limited
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Banking The Luxembourg Bankers' Association - The ABBL
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Banking Loan Market Association
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Asset Management Amundi
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Central Securities Depository (CSD) Euroclear
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Others Trax
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Banking German Banking Industry Committee
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Others ISO TC68 AG2 Standards Advisory Group
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Central Securities Depository (CSD) European Central Securities Depositories Association
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Banking Austrian Federal Economic Chamber, Division Bank and Insurance
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Central Counterparty (CCP) European Association of CCP Clearing Houses (EACH)
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Regulated markets, exchanges & trading systems LSEG
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Others Nordic Securities Association
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Others International Securities Lending Association
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Others ICMA European Repo and Collateral Council
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  • 17830
Others FIA
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Others Risk Focus Ltd
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Asset Management The Investment Association
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Asset Management Union Asset Management Holding AG
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Others Association for Financial Markets in Europe (AFME)
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Banking ABN AMRO Clearing Bank N.V.
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Trade Repository KDPW SA
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Others Markit
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Central Counterparty (CCP) ICE Clear Europe
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Deutsche Börse Group
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Trade Repository REGIS-TR
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Banking Deutsche Bank AG
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BNY Mellon
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Asset Management BVI
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Others Bloomberg LP
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Asset Management Alternative Investment Management Association
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Others AFG
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Banking British Bankers' Association
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Banking British Bankers' Association
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Others EFET (European Federation of Energy Traders)
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Regulated markets, exchanges & trading systems CME Group
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Asset Management ASSOGESTIONI
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Asset Management European Fund and Asset Management Association
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