What is SFTR Transaction Reporting?

The Securities Financing Transactions Regulation (SFTR) is an EU and UK regulatory framework aimed at improving transparency and monitoring risks associated with Securities Financing Transactions (SFTs). SFTR aims to shed light on the leverage and liquidity impact of SFTs.

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Former FCA regulator, Sophia Fulugunya discusses the challenges firms face with SFTR Transaction Reporting requirements.

About SFTR

Firms are obligated to report details of SFTs that they have concluded, modified or terminated to a trade repository (TR). The relevant regulations require that the data is submitted at T+1 (trading day plus one business day). Both sides of the SFT must be reported to a TR but the obligations can be fulfilled by one party as long as it is indicated in the report and both reports are full and complete.

SFTR applies to all UK and EU financial counterparties and their branches that engage in (non-exhaustively):

- repo - securities borrowing / lending
- margin lending - commodities borrowing / lending
- collateral reuse - funding sources reports
- cash reinvestment - buy-sell back / sell-buy back

UK Alternative Investment Funds (AIF) do not need to report but their management firms (AIFM) do. Non-UK AIF do not need to report unless their branch deals in SFTs. Similarly, undertakings for the Collective Investment in Transferable Securities (UCITS) do not need to report but their management firms do. UK non-financial counterparties do not need to report.

Rely On Qomply To Help

Qomply has a variety of solutions to help firms comply with their regulatory SFTR reporting obligations:

QomplyEngine generates EMIR REFIT transaction reports QomplyEngine - Generate Transaction Reports From Raw Data
Builds transaction reports from raw data points and save resources and hassle by offloading transaction report generation
Quality Assurance for Transaction Reports Diagnostic Auditor - Ensure Reports Are Accurate
Apply over 1,000 accuracy checks and scenarios across your Transaction Reporting in a click
QomplyDirect send reports directly to the FCA QomplyDirect - Submit Reports Directly to Regulator
Send Transaction Reports directly to the regulator bypassing the need to use an ARM thus reducing costs and improving efficiency
Outsource your EMIR REFIT Report Operations Qomply Managed Services - Delegate Your Transaction Reporting Operations to Qomply
Qomply Managed Service alleviates the burden of technical expertise but also provides peace of mind that regulatory requirements are being met in a risk-free and cost-effective manner

External Resources

● SFTR Regulations
● UK SFTR Reporting Obligation
● SFTR Reporting
● ESMA Q&A on SFTR Data Reporting
● ESMA Guidelines

More Reporting Regimes

● MiFID II Transaction Reporting 101
● MiFID II Post-Trade Reporting 101
● EMIR Refit Transaction Reporting 101
● CFTC Transaction Reporting 101
● MAS Transaction Reporting 101
● SFTR Transaction Reporting 101

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