Tue, Jul 14, 2020
Following the financial crisis of 2008, regulators sought to increase transparency in securities financing transactions (SFTs).
Under SFTR, firms engaged in the following SFTs will need to report them to a trade repository:
The SFTR imposes new obligations on affected firms in relation to three areas:
SFTR Reporting goes live on a staggered schedule and impacts a wide variety of counterparties across the ‘shadow banking’ industry. It is being implemented as follows:
In addition to reporting new SFT trades, firms will need to report any modification and termination of the transaction and report margin updates and collateral reuse.
SFTR is a complicated regulatory requirement and covers 155 reportable fields, from rule interpretation to reporting practicalities such as Unique Transaction Identifier (UTI) sharing and data reconciliation. The FCA has a webpage covering SFTR, which you can access here.
Duff & Phelps has extensive experience assisting firms with SFTR implementation, including areas such as data, reporting, governance, controls and the provision of training. If you would like to find out more about how we can help you, please contact us.
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