Europe’s SFTR reporting regime begins
Following fifteen months of preparation, the European Securities and Markets Authority (ESMA) oversaw a successful first day of reporting by financial market participants of securitised financing transaction (SFT) data to EU trade repositories (TRs) this week.
The SFT Regulation is designed to enhance the transparency of securitisation in finance markets. The new reporting mandates require counterparties to report the details of any SFT concluded to a registered trade repository (TR) in line with the regulatory technical standards.
The new regulation – which has been delayed by several months due to Covid-19 – also requires counterparties to be identified with a Legal Entity Identifier (LEI) code. This will help increase the transparency of ownership structures and make risk exposure easier to track.
Read more about SFTR reporting here.