The European Securities and Markets Authority (ESMA) published its first set of Questions and Answers relating to reporting under the Securities Financing Transactions Regulation (SFTR).
The purpose of this Q&A is to provide greater clarity to market participants on how to comply with their reporting requirements under SFTR. The Q&A includes clarifications on how reporting of certain business events should be performed, such as:
- Reporting of fields related to time and applicable calendars
- Reporting of settlement legs
- Reporting of SFTs collateralized initially at transaction and then at net exposure level
- Reporting of SFTs concluded off venue and cleared on the same day
- Reporting of zero collateral for margin loans
The set of Q&A complements ESMA’s guidance on reporting under SFTR and is aimed at trade repositories and at entities that have a reporting obligation under SFTR.