The European Securities and Markets Authority (ESMA) has issued a consultation paper on draft technical standards implementing the Securities Financing Transaction Regulation (SFTR).

The SFTR creates an EU framework under which details of securities financing transactions (SFTs) can be efficiently reported to trade repositories and information on SFTs and total return swaps is disclosed to investors in collective investment undertakings. The definition of SFT in the SFTR does not include derivative contracts as defined in the European Market Infrastructure Regulation (EMIR). However, it includes transactions that are commonly referred to as liquidity swaps and collateral swaps, which do not fall under the definition of derivative contracts in EMIR.

In ESMA’s consultation paper stakeholder views are sought on the draft implementing measures that cover a number of important areas including:

• the procedure and criteria for the registration as a trade repository under the SFTR;
• the use of internationally agreed reporting standards, the reporting logic and the main aspects of the structure and content of SFT reports;
• the requirements regarding transparency of data, data collection, aggregation and comparison; and
• the access levels for different competent authorities.

The deadline for comments on the consultation paper is 30 November 2016. ESMA will consider the feedback it received to the consultation in Q4 2016. The final report and the draft technical standards will be submitted to the European Commission for endorsement by the end of Q1/beginning Q2 2017.

View ESMA consults on future reporting rules for securities financing transactions, 30 September 2016