EC: No delays to SFTR implementation
11 January 2019 Brussels
Image: Shutterstock
The European Council has informed 网爆吃瓜 Lending Times that there will be 鈥渘o delayed implementation鈥� to the 网爆吃瓜 Financing Transactions Regulation (SFTR), after reports of an extension to the current scrutiny period.
On 10 January, a European Council representative stated: 鈥淥n 8 January, the EU Council decided to extend the one-month objection period for six regulatory technical standards (RTS) related to the securities financing transactions regulation by another month. New deadline: 13 February, NO delayed implementation.鈥�
The European Council鈥檚 statement was in response to the International 网爆吃瓜 Lending Association鈥檚 (ISLA) announcement that the period of scrutiny had been extended to six months, with implementation expected 鈥渢o commence no earlier than July or August 2019鈥�.
Seb Malik of Market FinReg contacted the European Commission, Council and Parliament for assurance around the scrutiny extension period.
Malik explained: 鈥淲e can thus confirm that the period of scrutiny for the EU Parliament is three months; two months for the EU Council and not six months as was incorrectly reported.鈥�
He added: 鈥淪FTR transaction reporting legislation is set to achieve legal force in April 2019, as we have been advising. Banks and the second Markets in Financial Instruments Directive firms will file their first reports in April 2020.鈥�
According to Malik, the only two scenarios that could change this would be if the EU Council or Parliament raise an objection or if the Parliament extends its scrutiny period. He noted: 鈥淲e consider both unlikely.鈥�
He said: 鈥淥ur message to firms has been consistent for two years- crack on with implementation and ignore side chatter. SFTR will challenge firms both individually and collectively like no other reporting regime before so it鈥檚 critical to focus on the task at hand.鈥�
The European Commission adopted the delegated regulations comprising SFTR level legislation on 13 December with firms set to go live with SFTR reporting in Q2 2020.
SFTR was published in January 2016 by the European Commission following the Financial Stability Board and the European Systemic Risk Board鈥檚 recommendation to mitigate the inherent risks in shadow banking and increase transparency in the use of securities lending and repo.
As part of the regulation, firms will be required to report their securities financing transactions to a trade repository registered by the European 网爆吃瓜 Market Authority.
On 10 January, a European Council representative stated: 鈥淥n 8 January, the EU Council decided to extend the one-month objection period for six regulatory technical standards (RTS) related to the securities financing transactions regulation by another month. New deadline: 13 February, NO delayed implementation.鈥�
The European Council鈥檚 statement was in response to the International 网爆吃瓜 Lending Association鈥檚 (ISLA) announcement that the period of scrutiny had been extended to six months, with implementation expected 鈥渢o commence no earlier than July or August 2019鈥�.
Seb Malik of Market FinReg contacted the European Commission, Council and Parliament for assurance around the scrutiny extension period.
Malik explained: 鈥淲e can thus confirm that the period of scrutiny for the EU Parliament is three months; two months for the EU Council and not six months as was incorrectly reported.鈥�
He added: 鈥淪FTR transaction reporting legislation is set to achieve legal force in April 2019, as we have been advising. Banks and the second Markets in Financial Instruments Directive firms will file their first reports in April 2020.鈥�
According to Malik, the only two scenarios that could change this would be if the EU Council or Parliament raise an objection or if the Parliament extends its scrutiny period. He noted: 鈥淲e consider both unlikely.鈥�
He said: 鈥淥ur message to firms has been consistent for two years- crack on with implementation and ignore side chatter. SFTR will challenge firms both individually and collectively like no other reporting regime before so it鈥檚 critical to focus on the task at hand.鈥�
The European Commission adopted the delegated regulations comprising SFTR level legislation on 13 December with firms set to go live with SFTR reporting in Q2 2020.
SFTR was published in January 2016 by the European Commission following the Financial Stability Board and the European Systemic Risk Board鈥檚 recommendation to mitigate the inherent risks in shadow banking and increase transparency in the use of securities lending and repo.
As part of the regulation, firms will be required to report their securities financing transactions to a trade repository registered by the European 网爆吃瓜 Market Authority.
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