Navigation and Service

Content

SFTR Reporting Get ready now for upcoming reporting requirements

The new European Regulation No. 2015/2365 on transparency of securities financing transactions and of re-use (SFTR) intends to improve transparency on securities financing markets by introducing reporting requirements for counterparties to a securities financing transaction (SFT) into a Trade Repository (Art. 4 SFTR) – similar to requirements implemented under EMIR for OTC derivatives.

Your reporting requirements

Those reporting obligations will be phased-in in four stages depending on counterparty classification beginning 12 months after adoption of the Level 2 delegated acts (RTS), i.e. first reporting is currently not expected before Q3 2019.

SFTR reporting affects all counterparties to an SFT that are established within the EU (incl. EU and 3rd country branches) as well as EU-domiciled branches of 3rd country entities:

  • Financial counterparties (FC): e.g. banks, brokers, asset managers
  • Non-financial counterparties (NFC): all counterparties not classified as financial counterparties


SFTR requires affected counterparties to report counterparty, transaction, collateral composition, margin and re-use details of

  • Repurchase agreements (‘Repos’)
  • Sell-buy back or buy-sell back transactions
  • Securities or commodities borrowing/lending transactions
  • Margin lending agreements


at conclusion, modification or termination to a registered/recognized TR.

Key benefits

  • Rely on Deutsche Börse Group’s regulatory experience as trading venue, regulated market, CCP, CSD and a TR (REGIS-TR) in managing and supporting regulatory change
  • ARM and APA status as well as reporting into all relevant NCAs
  • Coverage of multiple jurisdictions and regulations also beyond SFTR to enable the move to a One-Stop Regulatory Reporting Hub
  • Integrated, highly-efficient STP reporting
  • A high-quality and reliable performance infrastructure, including audit trail
  • Reduction of risks (e.g. sanctions)
  • Competitive pricing and low implementation cost

Our Service

Although the final implementation details on SFTR reporting are not yet published, the industry needs to prepare for additional reporting requirements and implementation challenges, such as

  • Assigning Legal Entity Identifiers (LEIs) to counterparties/beneficiaries
  • Linking of securities financing transactions (SFTs) between involved counterparties and along the lifecycle via issuance of a Unique Trade Identifier (UTI)
  • Sourcing information from various entities across the industry, e.g. tri-party collateral agents, trading venues and across front- to back office systems
  • Ensure matching of certain fields with other counterparties’ record

Data enrichment

The Regulatory Reporting Hub plans to leverage multiple external and internal data sources to enrich reporting records for SFTs

  • Executed on Eurex Repo - Bilateral and cleared markets
  • Cleared at Eurex Clearing - Cleared Repo incl. GC pooling, Lending CCP
  • Originated at Clearstream's Global Securities Financing - ‘Global Liquidity Hub’ Securities Lending and tri-party collateral management services

in order to minimize reconciliation breaks and human intervention.

Registration

Deutsche Börse Group’s Regulatory Reporting Hub and its industry experts are committed to help you ensure full SFTR-compliance as your partner. With SFTR as new Regulation at RRH, we will continue on the journey to our vision of a one stop shop for all regulations, enabling our clients to unlock cross-regulation synergies.

Therefore, we kindly asks all companies to show their interest for SFTR by registering under following link:

> Registration

Early adopters and design group participants may be granted admission to an early adopter incentive scheme.