ESMA delays SFTR implementation
The European Securities and Markets Authority (ESMA) has delayed the reporting start date for Securities Finance Transactions Regulation (SFTR) in response to the COVID-19 outbreak, reports Jane Connolly.
SFTR mandates reporting of all securities financing transactions (SFTs) to a registered trade repository (TR). Reporting obligations for credit institutions, investment firms and relevant third-country entities become applicable as of 13 April 2020, with later start dates for other kinds of entity.
The EU regulator acknowledges the business impact of COVID-19.
In a public statement, ESMA announced its response to the coronavirus pandemic and the unprecedented pressures it has placed on businesses around the world.
Read more: ESMA postpones CSDR settlement discipline regime
‘ESMA expects competent authorities not to prioritise their supervisory actions towards entities subject to Securities Finance Transactions (SFT) reporting obligations as of 13 April 2020 and until 13 July 2020. ESMA also expects TRs to be registered sufficiently ahead of the next phase of the reporting regime, i.e. 13 July 2020, for credit institutions, investment firms, CCPs and CSDs and relevant third-country entities to start reporting as of this date.’
The regulator also stated it would be closely monitoring implementation and the impact of measures taken in reaction to the COVID-19 outbreak, ‘to ensure alignment of SFT reporting requirements and supervisory practices in the EU.’
You can read the full public statement from ESMA here.
