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.
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.
Qomply has a variety of solutions to help firms comply with their regulatory SFTR reporting obligations:
QomplyEngine - Generate Transaction Reports From Raw Data Builds transaction reports from raw data points and save resources and hassle by offloading transaction report generation |
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Diagnostic Auditor - Ensure Reports Are Accurate Apply over 1,000 accuracy checks and scenarios across your Transaction Reporting in a click |
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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 |
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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 |
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