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The European Regulation No. 2015/2365 on transparency of securities financing transactions and of re-use (SFTR) went into force in January 2016. Reporting requirements will be phased-in in four stages depending on counterparty classification beginning 12 months after adoption of the Level 2 delegated acts (RTS), which is currently not expected before Q3 2019.
The 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 (TR), similar to requirements implemented under EMIR for OTC derivatives (Art. 4 SFTR).
SFTR 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:
ESCB entities and BIS are exempted from reporting under SFTR.
Reporting requirements will be phased-in in four stages depending on counterparty classification beginning 12 months after adoption of the Level 2 delegated acts (RTS).
SFTR requires affected counterparties to report counterparty, transaction, collateral composition, margin and re-use details of
Although the final implementation details on SFTR reporting are not yet known, the industry needs to cope with additional reporting requirements and implementation challenges, such as
Key success factors in efficient SFTR reporting are inter alia same data sets to be used as the other Counterparty to avoid reconciliation breaks and human intervention, and efficient ways to monitor the status of the Transactions along the lifecyle.
Deutsche Börse Regulatory Reporting Hub intends offer to its clients a SFTR solution and complementary governance, operational management and compliance supporting features and services.
The SFTR solution will help our clients master their SFTR challenge by leveraging our Deutsche Boerse Groups specific assets and by way of providing a unique solution for delegated reporting:
Coverage of all SFT- Transaction types reportable under SFTR
Coverage of needs of all types of entities (e.g. investment firms, corporates) subject to reporting obligation
Sourcing information from various entities across the industry, leveraging Deutsche Boerse Groups specific assets from Clearstream as Tri-Party Collateral Management Agent and from Securities Lending, Eurex Repo as Trading Venue, Eurex Clearing as CCP and Regulatory Reporting Hub’s Reference Data
By way of delegation of reporting and enrichment, reduction of reporting breaks and data provision through delegation/ enrichment of all SFTs that are
Validation of submitted data for authentication, file format, regulatory , business logic and cross regulation rules, incl. identification of action codes
Reconciliation of records with other counterparty pre-TR submission to reduce breaks at TR level, to improve reporting quality and to reduce risk of sanctions
Provision of TR feedback for further analysis and break mitigation
Data streaming and processing from submission into RRH through validations, enrichments and data formatting all the way to the regulated Transaction Repository, such as Regis-TR
Reduced investment needs and reduction of ongoing reconciliation breaks for Eurex Repo’s, Eurex Clearing’ and GFF clients through ability to delegate reporting for all SFTs that are
Opportunity to unlock cross-regulation synergies between SFTR and MiFIR (SFTs against ESCB entities) by way of leveraging RRH’s Art. 26 Transaction Reporting solution (ARM), reporting into all relevant NCA’s – under EU regime.
Rely on Deutsche Börse Group’s regulatory experience as trading venue, regulated market, ARM, APA, CCP, CSD and a TR (REGIS-TR) in managing and supporting regulatory change
Coverage of multiple jurisdictions and regulations also beyond SFTR to enable the move to a One-Stop Regulatory Reporting Hub
A high-quality and reliable performance infrastructure, including audit trail
Reduction of risks (e.g. sanctions)
Competitive pricing and low implementation cost
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. With SFTR and MiFIR features integrated, the vision now comes alive.
Therefore, we kindly asks all companies to show their interest for SFTR by registering here:
Early adopters and design group participants may be granted admission to an early adopter incentive scheme.