ESMA pragmatism allows three-month COVID-19 delay to SFTR implementation
ESMA has stepped up in light of the current COVID-19/Coronavirus crisis.
Following the joint appeal to ESMA and the European Commission by ICMA and ISLA on Monday 16 March, ESMA has today announced a three-month delay to SFTR implementation. They have created this technical delay in three steps:
- Requesting that National Competent Authorities do not prioritise supervisory actions until 13 July 2020
- ESMA not registering any Trade Repositories (TRs) ahead of 13 April 2020
- Stating that ESMA will also not be available to record details of Securities Financing Transactions (SFTs).
These three actions ensure “counterparties, entities responsible for reporting and report submitting entities will be unable to report by the reporting start date.”
“ESMA expects TRs to be registered sufficiently ahead of the next phase of the reporting regime, i.e. 13th July 2020 for credit institutions, investment firms, CCPs and CSDs and relevant third-country entities to start reporting as of this date.”
The ESMA public statement has the full details.
Kaizen is offering quality assurance testing as well as core training on the reporting obligations. Get in touch to find out more about how we can get you ready for reporting under SFTR.