Reporting of securities financing transactions: an update
Regulation (EU) 2015/2365 on transparency of securities financing transactions (the SFTR) generally came into effect from January 2016. However, the obligation to report securities financing transactions (SFTs) to a trade repository (TR) does not yet apply. As explained below, there has been a lengthy delay in finalising the reporting provisions, leading to some frustration among market participants, who have been hampered in planning and budgeting for implementation of SFT reporting (which will require substantial operational and financial resources). However, it now looks as if finalisation of the reporting provisions is in sight, and that, for at least some market participants, the reporting obligation may come into force during 2019.