To provide clients with an efficient and cost-effective solution to meet new reporting requirements under the Securities Financing Transactions Regulation (SFTR), Global Trade Repository (GTR) will enter the securities financing market as a registered Trade Repository for Securities Financing Transactions (SFT) reporting.
Scheduled to go live in Q4 of 2018, SFTR was proposed by the European Commission in January, 2014, in an effort to promote greater transparency in the securities financing markets. The new regulation will require all European Union (EU) firms to report their SFTs to an approved trade repository, including repurchase agreements (repos), securities lending activities and margin financing activities.
“As the markets continue to evolve and regulatory requirements change in order to promote greater transparency and risk mitigation, clients need the most reliable possible solution to meet reporting requirements,” said Chris Childs, DTCC Managing Director and CEO, Deriv/SERV. “GTR is not only the world’s largest trade repository, it is entirely industry-owned, delivering the most reliable solution to help clients remain in compliance.”
What is a Securities Financing Transaction?
Securities financing transactions (SFTs) are transactions where securities are used to borrow cash (or other higher investment-grade securities), or vice versa – this includes repurchase transactions, securities lending and sell/buy-back transactions.
SFTR will apply to all firms and legal entities established in EU, regardless of where the individual branch is. The new reporting requirements will also have a wider impact because it will apply to SFTs conducted by EU branches of non-EU firms, and any SFT where the securities used are issued by an EU issuer or by an EU branch of a firm. While the SFTR is an entirely new regulation, the reporting obligation is structurally similar to the European Market Infrastructure Regulation (EMIR) in that submissions must be made to a trade repository.
With more than 6,000 clients spanning three continents, DTCC’s GTR provides firms a one-stop-shop to fulfill their reporting obligations while providing regulators with unprecedented transparency for industry risk management.
For more information on how GTR can help meet your firm’s regulatory needs, please email SFTR@DTCC.com.