ESMA - SFT Reporting Relief
March 20th | 2020
The EU’s securities markets regulator (ESMA), has issued a Public Statement to ensure coordinated effort in enforcing compliance with new Securities Finance Transactions Regulation (SFTR). SFTR mandates reporting of all Securities Financing Transactions (SFTs) – i.e., transaction where securities are used to borrow cash, or vice versa – to a registered Trade Repository (TR). Recognizing the impact COVID-19 is already having on financial firms, ESMA is recommending that EU regulators delay enforcement of the current April 13, 2020 registration and reporting deadline to July 13, 2020.
This will give TRs more time to cope with the emergency and be ready to support the new reporting regime later. This also aligns with the next phase of reporting where credit institutions, investment firms, and relevant third-country entities are expected to start reporting.