| Innhold: | The Securities Finance Transaction Regulation (SFTR) forms part of the EU’s response to the policy proposals issued by the Financial Stability Board (FSB) in August 2013. It aims to reduce risk by improving transparency in securities financing markets and seeks to impose a series of conditions and rules. ounterparties will be required to report details on trades and collateral to a registered trade repository (TR). While several SFTR provisions already apply today, the reporting regime itself will go live in four phases, a so-called staggered approach, starting in April 2020.
The European Securities and Markets Authority (ESMA) issued its final report on the technical standards for SFTR transaction reporting on March 31, 2017. The report details a total of 153 reportable fields covering securities lending, repo, buy/sell-back and margin lending. The reporting requirement is dual-sided and requires the provision of a unique transaction identifier (UTI) for each trade.
The foundation of a robust solution for SFTR is a clearly defined UTI distribution process; experiences with previous reporting regimes have highlighted the chaos that can ensue when this process is unsuccessful. The UTI will be necessary to link internal trade booking and allocations, but also for reporting of collateral and lifecycle events in the TR against counterparty data.
Furthermore, SFTR essentially prohibits the use of securities as collateral, where the issuer has not obtained an LEI; which also has (unintended) consequences for the securities finance markets. This article addresses these concerns, as well as the Danish sector’s approach to the exchange of UTI, by leveraging on existing settlement infrastructure.
Alle virksomheder, som handler værdipapirer på de finansielle markeder i EU, er i disse år underlagt en bølge af reguleringskrav, begrundet i bl.a. en hensigt om harmonisering af markedspraksis på tværs af EU‐lande, markedsgennemsigtighed samt investorbeskyttelseshensyn. Flere stort anlagte EU‐forordninger indeholder krav til indberetning af værdipapirtransaktioner; heriblandt Markets in Financial Infrastructure Regulation (MiFIR), Central Securities Depositories Regulation (CSDR), European Markets Infrastructure Regulation (EMIR), og sidst, men slet ikke mindst: Securities Financing Transaction Regulation (SFTR), hvis artikel 4 indfører dobbeltsidet indberetning af værdipapirfinansieringstransaktioner (herefter benævnt SFT). |