The European Parliament’s Committee on Economic and Monetary Affairs (ECON) has announced that its MEPs have voted in favour of a draft report on the proposed Regulation on securities financing transactions (the SFT Regulation).

In particular the press release notes that MEPs have:

  • added a provision that not only investment funds but also listed companies and banks would have to disclose their use of SFTs and reuse of collateral in their annual financial reports; and
  • extended the conditions that must be fulfilled when financial instruments received as collateral are being re-used. The providing party should be informed about risks and consequences involved in granting a right to use collateral and transferring title to it in the event of the default of the receiving party.

The MEPs’ vote consolidates the ECON position and the upcoming negotiations with the Council of the EU should start next month.

View MEPs back transparency rules on lending and re-use of securities, 24 March 2015