What is SFTR Reporting?
SFTR aims to improve transparency and reduce risks in securities financing markets; namely the repo, securities lending, buy-sellback and margin lending (prime brokerage) markets.
Firms trading securities financing products (financial and non-financial) must report details of all securities financing transactions to ESMA via a Trade Repository.
This complex requirement incorporates the following:
- Up to 155 fields to report depending on product
- Counterparty, loan & collateral, margin & re-use tables to populate
- Nine reportable action types
- Up to 48 fields reconcilable for pairing & matching on day one, increasing to 74 after two years
- Common standards (ISIN, LEI, UTI, CFI) plus extensive classification field requirements
- Identification of beneficial owners
- Reconciliation sensitivity around execution timestamps.