Industry associations publish SFTR breakdown letter
13 April 2016 London
Image: Shutterstock
Five industry bodies have joined forces to publish a joint statement to help market participants comply with Íø±¬³Ô¹Ï Financing Transactions Regulation (SFTR) requirements.
The EU’s SFTR rules come into force from 13 July 2016 and affect all existing and future title transfer and collateral arrangements.
The is the collaborative effort of the International Íø±¬³Ô¹Ï Lending Association, the Association for Financial Markets in Europe, the International Capital Market Association, FIA, and the International Swaps and Derivatives Association to highlight risks involved in security collateral arrangements and concluding title transfer collateral arrangements.
Under the SFTR, all parties accepting collateral must inform their counterparties of the risks involved in entering a title transfer arrangement or granting a right to reuse collateral under a security arrangement.
Failure to effectively comply with the new disclosure requirements will incur a fine and repeat offenders could face more severe repercussions depending on the member state within which the entity is based.
Íø±¬³Ô¹Ï Lending Times is running a regulatory workshop in London on 18 May tha​t ​​will cover SFTR along with other securities finance transaction regulations.
The EU’s SFTR rules come into force from 13 July 2016 and affect all existing and future title transfer and collateral arrangements.
The is the collaborative effort of the International Íø±¬³Ô¹Ï Lending Association, the Association for Financial Markets in Europe, the International Capital Market Association, FIA, and the International Swaps and Derivatives Association to highlight risks involved in security collateral arrangements and concluding title transfer collateral arrangements.
Under the SFTR, all parties accepting collateral must inform their counterparties of the risks involved in entering a title transfer arrangement or granting a right to reuse collateral under a security arrangement.
Failure to effectively comply with the new disclosure requirements will incur a fine and repeat offenders could face more severe repercussions depending on the member state within which the entity is based.
Íø±¬³Ô¹Ï Lending Times is running a regulatory workshop in London on 18 May tha​t ​​will cover SFTR along with other securities finance transaction regulations.
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