BNYM publishes summary of SFTR rules

James Day, Business Executive for Securities Finance, EMEA, BNY Mellon, and Charles Morris, Senior Associate, Clifford Chance, hosted a call on the impact of the Securities Financing Transactions Regulation (SFTR).

Securities Finance Regulatory Update: Securities Financing Transactions Regulation (SFTR)

Under this regulation, securities financing transactions (“SFTs”) cover a broad array of transactions including repos, stock loans, certain commodities lending/borrowing and margin lending (which includes transactions in which one counterparty extends credit in connection with the purchase, sale, carrying or trading of securities).
During the call, James and Charles discussed the SFTR’s three principal requirements:

  • conditions for collateral reuse;
  • disclosure of securities financing transactions by UCITS and alternative investment funds to their underlying investors; and
  • reports of securities finance transactions to trade repositories.

The full update is available here.

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