ESMA Sets Out Approach to SFTR Implementation

The European Securities and Markets Authority (ESMA) issued a public statement to ensure coordinated supervisory actions on the application of Securities Finance Transactions Regulation (SFTR) in light of the difficulties that firms and counterparties subject to the SFTR reporting obligations may face due to the COVID-19 pandemic. More specifically ESMA:

  • Invites competent authorities not to priorities supervisory actions towards counterparties, entities responsible for reporting and investment firms in respect of their reporting obligations relating to securities financing transactions (SFTs) concluded between April 13 and July 13 2020, and SFTs subject to backloading, and to generally apply a risk-based approach in their day-to-day supervision and enforcement work in this area; and
  • Does not consider it necessary for Trade Repositories (TRs) to be registered by April 13, 2020 as long as these are registered in advance of July 13, 2020, to allow firms and entities subject to the SFTR reporting requirements to start reporting as of this date.   

ESMA will continue monitoring the implementation by the relevant market participants and also the impact of the relevant measures taken with regards to COVID-19 to ensure alignment of SFT reporting requirements and supervisory practices in the EU. 

To read the ESMA statement click here

ESMA Sets Out Approach to SFTR Implementation 2020-03-19T00:00:00.0000000 /insights/publications/compliance-and-regulatory-consulting/regulatory-focus-april-2020/esma-sets-out-approach-to-sftr-implementation /-/media/assets/images/publications/compliance-and-regulatory-consulting/reg-focus/feature/sftr-implementation.jpg publication {DA6CC51B-740E-439A-B283-2BBFB5326BAA} {8C599C9E-ABD2-4F24-8081-BC637320BAE8}

Other Areas We Can Help

Notification, Call Centers and Monitoring

Compliance Consulting

Expert compliance support for a variety of firms including hedge funds, private equity firms, wealth managers, corporate finance and broker dealers.

Compliance Consulting