Íø±¬³Ô¹Ï

Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Íø±¬³Ô¹Ï
Leading the Way

Global Íø±¬³Ô¹Ï Finance News and Commentary
≔ Menu
Íø±¬³Ô¹Ï
Leading the Way

Global Íø±¬³Ô¹Ï Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. HomeRegulation news
  2. Final phase of SFTR goes live
Regulation news

Final phase of SFTR goes live


11 January 2021 UK
Reporter: Drew Nicol

Generic business image for news article
Image: geschmacksRaum/adobe.stock.com
The final phase of the EU’s Íø±¬³Ô¹Ï Financing Transactions Regulation (SFTR) is now live, bringing non-financial counterparties (NFCs) within the orbit of the reporting framework.

UK NFCs are no longer required to report under SFTR as the UK scrapped phase four of the regulation when on-shoring its version of the regulation prior to the completion of the Brexit transition period.

SFTR represents the securities finance industry’s first dual-sided reporting regime, including legal entity identifies and unique transactions identifiers that account for just two of the 155 data fields that must be sent to an approved trade repository on a T+1 basis.

Phase one and two related to sell-side firms, central counterparties and central securities depositories that began reporting in July 2020, while phase three brought in investment funds, pension funds and (re-)insurance undertakings, which joined in October 2020.

With the fourth phase of SFTR phase now in play, the industry can fully turn its attention to solving some of the lingering reporting issues that arose during earlier phases.

According to Susana Huete, a senior consultant at Margin Reform, these include data quality, reporting delegation, collateral bulk rejection from trade repositories (TR) and pairing challenges.

Huete adds that the UK’s divergence from the EU’s SFTR means the main focus for this final phase will be to get the correct reporting depending on jurisdiction, as there will be no inter TR reconciliation between UK and EU.

This means that some firms will need to report to both an EU and UK TR.

Now read: SFT's SFTR Annual 2020
Next regulation article →

Trades reported to EMIR TR triple, KDPW finds
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Íø±¬³Ô¹Ï Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Collateral

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →