ESMA reveals latest SFTR reporting requirements

Required information under securities finance transaction regulations (SFTR) should be included in the next annual or half yearly reports published after 13 January 2017, according to latest directives from the European Securities and Markets Authority (ESMA).

The rule applies to information from reporting periods that could date back as far as January 2016.

The requirements relate to UCITS management companies, UCITS investment companies and alternative investment fund managers providing information to investors on the use of securities finance transactions and total return swaps.

These requirements come as part of Article 13 that comes into effect from 13 January.

Implemented in July this year, SFTR rules bind all current and future transfer and security collateral arrangements to a variety of financial agreements.

These include all parties that accept collateral informing their counterparties of relevant risks involved in entering a title transfer arrangement or granting a right to reuse collateral under a security arrangement.

Earlier this year, ESMA chair Steven Maijoor spoke of how he aimed to minimise disruption ahead of SFTR implementation in July stating that “ESMA has learnt a lot from the EMIR experience, which was a major reporting regime introduced in a big-bang way in the EU in February 2014.”