ESMA approves extensions of four trade repositories registrations to include SFT reporting

The European Securities and Markets Authority (ESMA) approved extension of registrations of four trade repositories (TRs) to include securities financing transactions (SFT) reporting under the Securities Financing Transactions Regulation. The extensions will be effective from 7 May, 202 and TRs are DTCC Derivatives Repository plc, UnaVista TRADEcho B.V., Krajowy Depozyt Papierów Wartościowych S.A. and REGIS-TR S.A.

The four TRs have been registered for all types of SFTs, including repurchase transactions, securities or commodities lending and securities or commodities borrowing transactions, buy-sell back or sell-buy back transactions and margin lending transactions. TRs are already registered with ESMA as TRs for derivatives contracts under the European Markets Infrastructure Regulation (EMIR).

SFTR aims to improve the transparency of securities financing market and accordingly requires all counterparties to SFTs to report the details of any SFT they have concluded, as well as any modification or termination, to a registered trade repository (TR). The regulation also provides for the direct supervision and registration of TRs by ESMA – the sole supervisor of TRs for the purpose of EMIR and SFTR in the European Union.

TRs are commercial firms that centrally gather and store records of SFTs reported to them. The registration of a TR allows them to be used by counterparties to a SFT to complete their trade reporting obligations under SFTR.

To be registered as a TR, a company must demonstrate it can comply with the requirements of SFTR, including ones that concern operational reliability, safeguarding and recording, as well as transparency and data availability.

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