What is SFTR Transaction Reporting?

The Securities Financing Transactions Regulation (SFTR) is an EU and UK regulatory framework aimed at improving transparency and the ability of regulators to monitor the 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 submit details of SFTs that they have concluded, modified or terminated to a trade repository (TR) on 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 (FC) 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.

FAQ: CSA Transaction Reporting / CSA Rewrite

A UK and EU transaction reporting regime that aims to provide greater transparency in the securities financing market, with the aim of enabling regulators to monitor this area more effectively – including for hidden leverage, collateral reuse, and systemic risk.
All UK and EU counterparties and their third country branches must report details of SFTs they have concluded, modified or terminated to a TR. Whilst Non-Financial Counterparties can report, if they are transacting with an FC, the FC will likely report for both sides – the purpose behind this measure was to introduce an element of proportionality for smaller firms dealing with larger ones.

SFTR reporting covers the following, non-exhaustive list of activities:

- Repo - Securities borrowing / lending
- Margin lending - Commodities borrowing / lending
- Collateral reuse - Funding sources reports
- Cash reinvestment - Buy-sell back / sell-buy back
The default position is that both parties have reporting obligations, so SFTR is technically a double-sided reporting regime. However, in practice, it is common for one side to delegate their reporting obligation to the other, particularly if you have a smaller Non-Financial Counterparty interacting with a large FC, like a bank. Examples of this include fund managers reporting on behalf of funds, or financial counterparties reporting on behalf of smaller NFCs. It is also possible for SFTR reporting to be delegated to third parties.

Rely On Qomply To Help

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

QomplyEngine generates SFTR 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

SFTR Diagnostic Auditor - Ensure Reports Are Accurate


Apply 100+ accuracy, scenario-level and best practice checks across your SFTR Transparency Reports in a click and comply with MiFID II requirements
Outsource your MiFID II Post-Trade Transparency 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

● UK SFTR Reporting Obligation | FCA
● SFTR Reporting
● 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
● CSA Transaction Reporting 101
● MAS Transaction Reporting 101
● ASIC Transaction Reporting 101

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