On 19 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement regarding the postponement of the reporting obligations related to securities financing transactions (SFTs) under both the Securities Financing Transactions Regulation (SFTR) and the Markets in Financial Instruments Regulation (MiFIR).

ESMA understands that the SFT reporting implementation is now heavily impacted by the COVID-19 pandemic and therefore ESMA:

  • expects Member State competent authorities not to prioritise their supervisory actions towards counterparties, entities responsible for reporting and investment firms in respect of SFT reporting obligations, under SFTR and MIFIR, as of 13 April 2020 and until 13 July 2020, including regarding to SFTs concluded in that period of time, and to generally apply their risk-based approach in the exercise of supervisory powers in their day-to-day enforcement of applicable legislation in this area in a proportionate manner;
  • does not consider it necessary to register any trade repository ahead of 13 April 2020. ESMA is also not available to record the details of SFTs. As a result, counterparties, entities responsible for reporting and report submitting entities will be unable to report by the reporting start date; and
  • expects trade repositories to be registered sufficiently ahead of the next phase of the reporting regime, i.e. 13 July 2020, for credit institutions, investment firms, central counterparties and central securities depositories and relevant third-country entities to start reporting as of this date.