The European Securities and Markets Authority (ESMA) has published a final report on standards implementing the Securities Financing Transaction Regulation (SFTR) and certain amendments to the European Markets Infrastructure Regulation (EMIR).

The final report includes:

  • a summary of feedback on ESMA’s proposals on the procedure and criteria for registration or extension of registration as a trade repository (TR) under the SFTR and on certain amendments to the similar EMIR requirements as well as the proposed way forward (section 3 of the final report);
  • a summary of feedback on ESMA’s proposals on the use of ISO 20022 reporting standards, the reporting logic under the SFTR and the main aspects of the structure of an SFT report and the way forward (section 4 of the final report);
  • feedback on the requirements regarding data collection, transparency, aggregation and comparison of data and proposed rules for the relevant processes (section 5 of the final report);
  • explanatory text of the Implementing Technical Standards on data exchange between authorities (section 7 of the final report);
  • final draft technical standards under Articles 4(9), 4(10), 5(7), 5(8), 12(3) and 25(4) of the SFTR, as well as amendments to the draft technical standards under Article 56(3) and 81(5) of EMIR (sections 10 to 18 of the final report).

The draft technical standards under the SFTR and the amended technical standards under EMIR have been submitted to the European Commission for endorsement. The Commission has to decide whether to endorse the draft technical standards within 3 months.

Steven Maijoor, ESMA Chair, said:

“The SFTR will provide transparency on the use of securities financing transactions, and will allow identifying risks associated with the collateral and its reuse.”

View ESMA provides implementing details for SFTR, 31 March 2017