05.07.2020

ESMA Registers Four Trade Repositories For SFTR

Mark Husler, chief executive of UnaVista, said in a statement: “UnaVista’s approach to SFTR is to simplify things as much as possible for our community, that means making easy to prepare, test and connect and then providing tools to help firms improve their reporting once live. This will mean that our customers and their clients will be able to ensure compliance with their SFTR reporting obligations from day one in a simple, cost-efficient way.”The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has approved the extension of registrations of four trade repositories (TRs) to include securities financing transactions (SFT) reporting under the Securities Financing Transactions Regulation. The TRs concerned are DTCC Derivatives Repository plc, UnaVista TRADEcho B.V., Krajowy Depozyt Papierów Wartościowych S.A. and REGIS-TR S.A. with effect from 7 May 2020.

All four TRs have been registered for all types of SFTs, i.e. repurchase transactions, securities or commodities lending and securities or commodities borrowing transactions, buy-sell back or sell-buy back transactions and margin lending transactions.

The four TRs are already registered with ESMA as TRs for derivatives contracts under the European Markets Infrastructure Regulation (EMIR).

Background    

SFTR, with the aim of enhancing the transparency of securities financing market, requires all counterparties to SFTs to report the details of any SFT they have concluded, as well as any modification or termination, to a registered trade repository (TR). It also provides for the direct supervision and registration of TRs by ESMA, who is the sole supervisor of TRs for the purpose of EMIR and SFTR in the European Union.

TRs are commercial firms that centrally collect and maintain the records of SFTs reported to them. The registration of a TR means that it can be used by counterparties to a SFT to fulfil their trade reporting obligations under SFTR.

To be registered as a TR, a company must be able to demonstrate to ESMA that it can comply with the requirements of SFTR, including, most importantly, on:

  • operational reliability;
  • safeguarding and recording; and
  • transparency and data availability.

Regarding reporting obligations, counterparties to SFTs should consult ESMA’s public statement concerning actions to mitigate the impact of COVID-19 on the EU.

Source: ESMA

Val Wotton, Managing Director, Repository & Derivatives Services at DTCC, said in an email: “With less than three months remaining before SFTR’s implementation deadline for banks, investment firms, CCPs and CSDs, we are encouraged by the level of their preparations. More than 160 buy- and sell-side firms have signed up to adopt DTCC’s SFTR trade reporting service – in order to meet their regulatory obligations – while 35 vendors have partnered with DTCC’s GTR to enable a SFTR solution to be provided.”

Mark Husler, chief executive of UnaVista, said in a statement: “UnaVista’s approach to SFTR is to simplify things as much as possible for our community, that means making easy to prepare, test and connect and then providing tools to help firms improve their reporting once live. This will mean that our customers and their clients will be able to ensure compliance with their SFTR reporting obligations from day one in a simple, cost-efficient way.”

Thomas Steimann, chief executive of REGIS-TR, said in a statement: “We are delighted to be expanding our product offering to SFTR services, combining our wealth of knowledge in securities financing and expertise in regulatory reporting. Alleviating the reporting burden for market participants, we are the natural choice of trade repository for SFTR.”

Related articles

  1. From The Markets

    MarketAxess Expands in China

    Connection to China Foreign Exchange Trade System provides enhanced access to onshore bond market.

  2. The Central Securities Depositories Regulation had a mandatory buy-in regime.

  3. The review is an opportunity to recalibrate MiFID II regulations post-Brexit.

  4. Hermes Warns of Brexit Risk to Asset Managers
    Daily Email Feature

    Equivalence a Theme at FIA IDX

    Trade associations have asked for an extension of the temporary equivalence decision for UK CCPs. 

  5. The priority should be to ensure continuity of cross-border services and avoid market fragmentation.