Securities Financing Transactions Regulation (SFTR)
Asset managers, as part of their efficient portfolio management techniques, engage in securities financing transactions (mostly securities lending and repo). Such securities financing transactions are beneficial both for end-investors (as a source of additional revenues improving the performance of their investments) and for markets as a whole (by providing additional liquidity in the markets).
In 2015, the EU adopted the Securities Financing Transactions Regulation (SFTR) aimed at increasing the transparency of securities financing transactions through mandatory reporting of these transactions to trade repositories, appropriate disclosures to investors and minimum transparency conditions to be met when collateral is reused.
EFAMA supports every efforts made to enhance financial markets regulation which reinforces the stability and the transparency of the financial system.
In that perspective, EFAMA welcomes the opportunity to comment on the ESMA consultation paper on the Draft RTS and ITS under SFTR and amendments to related EMIR RTS.
Prior to replying to the consultation, we wish to make the following general remarks
EFAMA’s reply to ESMA’s Discussion paper on draft RTS and ITS under the Securities Financing Transaction Regulation
EFAMA is grateful for the opportunity to contribute to the drafting of the Regulation through a consultation and we appreciate the effort of the regulator to adopt an approach to reporting consistent with EMIR and to develop, where more efficient, a different reporting logic.