Chris Childs, Managing Director, Head of Repository and Derivatives Services and Chief Executive Officer and President, DTCC Deriv/SERV LLC
In response to the COVID-19 pandemic, the European Securities and Markets Authority (ESMA) has issued a public statement announcing the delay of phase 1 of the Securities Finance Transaction Regulation (SFTR) reporting obligations from April 13, 2020 to July 13, 2020.
DTCC supports ESMA’s move to provide market participants with additional time to be ready and we remain fully committed to helping our clients prepare for the new deadline during this challenging time.
What You Need to Know
ESMA has stated in its notice that the reporting date is now July 13, 2020, and that is irrespective of when DTCC becomes an authorized trade repository for SFTR. The reporting date remains July 13, 2020.
As we understand it, the first phase of SFTR reporting obligations is the only phase that currently has a date change. Phase 1, which was originally going into effect on April 13, 2020, is now combined with the second phase, going into effect on July 13, 2020. It is our understanding that there will be no backloading requirement given the compliance date has moved.
All subsequent phases are still on schedule. We encourage you to stay on track with your preparation.
Our Global Trade Repository (GTR) SFTR service will be fully ready when the financial industry is required to go live on July 13. We continue to be in close contact with ESMA on our registration as an authorized trade repository for SFTR reporting and anticipate it will come though by end of April and we will be ready to meet reporting obligations on July 13.
Our production environment is now open for pre-production testing to enable code, test production connectivity and submission of messages. Through our SFTR portal, you are able to setup end-of-day reports and view all your reported data and reconciliation results online.
We will update you as needed and I encourage you to contact GTR client support at [email protected] or your relationship manager should you have any questions or concerns. Please keep in mind however that your reporting obligation stems from SFTR and your national competent authority is the best source of regulatory guidance.