SFTR

What is SFTR reporting?

The Securities Financing Transactions Regulation (SFTR) is a European regulation that introduces reporting requirements for securities financing transactions (SFTs). SFTs include repurchase transactions (Repos), securities or commodities lending and borrowing transactions (SBL transactions), buy-sell back or sell-buy back transactions, and Margin Lending Transactions. The reporting aims to enhance transparency and regulatory oversight of the SFT market.

When did this reporting requirement come into force and who does this apply to?

The SFTR reporting requirements came into force in July 2020 for credit institutions and investment firms.

What is reportable?

Counterparties must report details of the SFTs they have concluded, modified or terminated to an authorized trade repository (TR). In addition to transaction reporting and collateral reporting, firms must report on Collateral Re-Use, Funding Sources, Margin Data and Cash Reinvestment.

How often is it reportable and what are the deadlines to report?

SFTs must be reported on a daily basis, including collateral market values, collateral reuse, and margins. Modifications and terminations throughout the life cycle of a trade must also be reported.

Reports must be submitted before the end of day on T+1.

Where do you submit the reports?

In the EU, SFTR reports must be submitted to authorized Trade Repositories.

In what format is it reportable?

SFTs must be reported using the ISO 20022 XML template applicable to each type of SFT. Counterparties can delegate reporting to a third party, but the full set of details that would have been reported separately by each counterparty must still be included

How can Finmatek help you?

  • Automated SFTR Reporting: Finmatek provides an automated platform that simplifies the collection and submission of data required for SFTR reporting
  • Customizable Reporting Solutions: The solution can be tailored to your firm’s specific reporting needs, enabling seamless integration with your existing systems and workflows for efficient SFTR reporting.
  • Expert Support and Guidance: Finmatek is staffed by a team of professionals with expertise in regulatory reporting & compliance. They offer support throughout the reporting process, helping clients navigate complex regulatory landscapes and ensuring accurate submissions to trade repositories.
  • Compliance Updates: As regulations evolve, Finmatek ensures that its reporting solutions are updated to reflect any changes in SFTR requirements. This commitment to staying current helps clients maintain compliance and avoid potential penalties associated with non-compliance.