On 13 April 2021, the European Securities and Markets Authority (ESMA) issued an updated statement on the implementation of LEI requirements for third-country issuers under the Securities Financing Transaction Regulation (SFTR) reporting regime.
ESMA maintains its position regarding third-country issuer LEI reporting included in its statement published on 6 January 2020 (ESMA74-362-388) until 10 October 2022, at the latest. ESMA expects that during this period trade repositories would not reject SFT reports of securities without a third-country issuer LEI which are lent, borrowed or provided as collateral in an SFT.
During this period ESMA would also expect counterparties, as well as the other entities participating in SFTs, such as agent lenders and tri-party agents that lend, borrow or use as collateral securities issued by third-country entities that do not have an LEI, to liaise with those issuers with a view to ensuring that they are aware of the requirements under SFTR. This would further facilitate the use of their securities by the counterparties subject to SFTR reporting requirements.
ESMA will give advance notice to market participants regarding its position on third-country issuer LEI reporting ahead of 10 October 2022.