All counterparties must report details of the securities financing transactions (SFTs) they have concluded, modified or terminated to a registered or recognised trade repository (TR) under EU Securities Financing Transactions Regulation (SFTR) reporting requirements.
Choosing a TR
EU SFTR trade reports may only be submitted to TRs registered or recognised by the European Securities and Markets Authority (ESMA). See ESMA’s list of registered TRs.
Who needs to report to a TR
All types and sizes of EU and UK entities who conclude SFTs are required to report the details to a TR.
Non-EU or non-UK entities must also report details of their SFTs to a TR if the SFT is concluded through an EU or UK branch.
Details to be reported
The details to be reported are set out in the SFTR reporting technical standards (see the SFTR Library).
How to fulfil the SFTR reporting obligation
The EU SFTR reporting requirements leverage substantially on key aspects of derivatives reporting under EMIR.
- Both counterparties must report their side of the SFT unless one party can report on behalf of both counterparties, by prior arrangement. Where one report is made on behalf of both counterparties, the report shall indicate this fact.
- Where a financial counterparty enters into an SFT with a non-financial counterparty who is a small and medium-sized enterprise (SME), the financial counterparty is solely and legally responsible for reporting both sides of the SFT to a TR.
- The EU SFTR technical standards set out what information needs to be submitted for each of the counterparties, and what information shall be submitted only once.
- Either counterparty to the SFT may delegate reporting to a third party (such as a third-party service provider).
- Where one counterparty reports on behalf of another counterparty, or a third party reports an SFT on behalf of one or both counterparties, the information reported must include the full set of details that would have been reported had the contracts been reported separately by each counterparty.