UK FCA updates SFTR reporting requirements with European central banks

The Temporary Transitional Power (TTP) has been in effect since the end of the transition period and was applied in the case of the UK SFTR to securities financing transactions (SFTs).

For transactions where one of the counterparties is a member of the European System of Central Banks (ESCB), the status quo was retained, and financial counterparties did not need to report these transactions under UK SFTR for the duration of the TTP.

The TTP will expire, for these purposes, on 31 March 2022. Once the TTP expires, UK counterparties subject to UK SFTR requirements will be required to report these transactions under UK SFTR.

We expect firms to review their reporting systems and make the necessary changes to ensure that any new and outstanding SFTs with members of the ESCB are reported as soon as possible after 1 April 2022. To avoid duplicative reporting, from 1 April 2022, SFTs will no longer be reportable under UK MiFIR (see chapter 3 relating to the Technical Standards (Markets in Financial Instruments) (Transaction Reporting) Instrument 2022 in Handbook Notice No. 96).

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