EU Securities Financing Transaction Reporting Obligation Phased-In from April 2020

A Commission Delegated Regulation and Commission Implementing Regulation setting out technical standards on the reporting of securities financing transactions have been published in the Official Journal of the European Union. These technical standards supplement the EU Securities Financing Transactions Regulation, which requires, amongst other things, all SFTs to be reported to EU-recognized trade repositories. Relevant reports must include details on the composition of collateral, whether collateral is available for reuse or has been reused, the substitution of collateral and any haircuts applied. The reporting obligation will apply to financial and non-financial counterparties, subject to exceptions for central banks and similar bodies. While various parts of the SFTR came into effect on January 12, 2016, the new reporting obligation is brought into force by these new technical standards.

The Commission Delegated Regulation sets out Regulatory Technical Standards on the details of securities financing transactions to be reported to trade repositories. The Commission Implementing Regulation sets out Implementing Technical Standards on the format and frequency of reports on the details of securities financing transactions to trade repositories.

Both of the new technical standards will enter into force on April 11, 2019 and will apply directly across the EU. The reporting obligation takes effect 12, 15, 18 or 21 months after entry into force of these technical standards, depending on the type of entity that is reporting. The obligation will apply to the following:

• banks and investment firms from April 11, 2020;
• CCPs and central securities depositories from July 11, 2020;
• other Financial Counterparties from October 11, 2020; and
• Non-Financial Counterparties from January 11, 2021.

View the SFTR reporting RTS.

View the SFTR reporting ITS.

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