Associations publish SFTR statement updating collateral provisions post-Brexit 19 May 2021UK Reporter: Alex Pugh
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Various industry associations have published a joint statement designed to inform market participants of the general risks and consequences that may be involved in consenting to a right of use of collateral post-Brexit in relation to SFTR.
Published on Monday, the statement was prepared by the International Securities Lending Association (ISLA), the Association for Financial Markets in Europe (AFME), the Futures Industry Association (FIA), the International Capital Market Association (ICMA), and the International Swaps and Derivatives Association (ISDA).
The updated statement was adjusted to help market participants comply with Article 15 — which relates to collateral reuse — of the Securities Financing Transactions Regulation (SFTR) as it forms part of ‘retained EU law’ as defined in the European Union Withdrawal Act 2018.
The UK SFTR Information Statement can be used to inform market participants of the general risks and consequences, ISLA says, involved in consenting to a right of use of collateral provided under a security collateral arrangement or of concluding a title transfer collateral arrangement.
Market participants can tailor the statement to suit their own specific circumstances, the association notes.
The statement informs a counterpart of the general risks and consequences that may be involved in consenting to a right of use of collateral provided under a security collateral arrangement, or of concluding a title transfer collateral arrangement.
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