The key objective of SFTR is to improve the transparency of the securities financing market. In particular, market participants are required to report securities financing transactions (SFTs) to a central database, a trade repository. This will allow public authorities to better observe market developments, such as the build-up of leverage in the financial system. Consequently, supervisors will be able to take better-targeted and timelier actions to mitigate the potential risks associated with SFTs, if necessary.
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