SFTR - Securities Financing Transactions

According to the SFTR regulation, a new module -SFT Reporting- of the Global Reporting System (GRS), have been implemented to comply with european rules and obligations.

SFTR - Securities Financing Transactions

The UE regulation

Regulation (EU) 2015/2365 on Transparency of securities financing transactions and re-use

Strengthening oversight and regulation of shadow banking with reference to Securities Financing Transactions (SFTs)

Securities Financing Transactions (SFTs)

  • Repurchase transactions (REPOs)
  • Securities or commodities lending or borrowing
  • Buy-sell back transactions or sell-buy back transactions
  • Margin lending transactions

New transparency obligations

  • Daily reporting to a trade repository
  • Transparency of collective investment undertakings (UCITS, AIF) in periodical reports and in pre-contractual documents

In scope entities

  • EU-based entities and their Non EU-based branches
  • Non EU-based entities when the SFT is stipulated with an EU-based branch
  • Financial and non financial counterparties

The GRS – SFT Reporting solution consists of the following key features:

  • completing the current SFT management applications with the missing data to be reported
  • it covers all the financial events and operations: orders, contracts, cancellations, expiry, early termination, restructuring;
  • it can interact with any Front-, Back-Office, OMS, and Position Keeping system developed by third parties – the majority of these providers (nearly all those active in Italy) is most likely already on a live or previously production tested integration;
  • managing and controlling the full reporting process, which potentially involves hundreds of thousands of operations and millions of data to be gathered, checked, corrected and reported;
  • managing Unique Trade Identifiers (UTI);
  • reporting transactions also on behalf of certain categories of clients
  • the data can be elaborated for any kind of analysis;
  • Transaction Reporting is the primary application of the platform. New destinations (i.e. markets) can be added or updated very easily;

Trade repositories with certified connectivity

  • GTR - DTCC
  • Regis-TR
  • UnaVista Trade Repository
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