ESMA release first SFTR Q&A 06 November 2020France Reporter: Natalie Turner
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The European Securities and Markets Authority (ESMA) has published its first set of Q&A documents for the Securities Financing Transactions Regulation (SFTR).
The purpose of the Q&A is to provide greater clarity to market participants on how to comply with their reporting requirements under the reporting frameworking, which first came into effect in July for the sell side, central counterparties and central securities depositories and then expanded to the buy side in October.
The document is aimed at competent authorities, entities and market infrastructures, it provides responses to questions posed by the general public, market participants and competent authorities in relation to the practical application of SFTR.
The questions focus on the frequency of reporting, settlement fails, reporting of repos initially collateralised on a per transaction basis and subsequently on a net exposure basis, reporting of trading venues for cleared and non-cleared SFTs and cash collateral for margin lending.
The document is intended to be continually edited and updated as and when new questions
are received. ESMA are periodically reviewing these Q&As on a regular basis to update them where required and to identify if, in a certain area, there is a need to convert some of the material into ESMA guidelines and recommendations.
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