ISLA to consult on ESMA’s updated SFTR reporting rules
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ISLA to consult on ESMA’s updated SFTR reporting rules 04 August 2021UK Reporter: Alex Pugh
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Following an update to SFTR Validation Rules and XML Schemas, ISLA has said it will review the changes as part of its SFTR working group to consider their implications.
The European Securities and Markets Authority (ESMA) made the update on 29 July, following a review of the proposed changes by the ISO Evaluation Group in June, with the update expected to take effect on 31 January 2022.
ESMA’s rules and guidance on implementing SFTR provisions set out what needs to be reported to TRs — such as legal entity identifier codes — and what guidelines counterparties should take into account when reporting.
These guidelines include the updated validation rules under SFTR and the XML SFTR Reporting Schemas — Counterparty and TR data exchange, Inter-TR data exchange and TR to authority data exchange.
The Securities Financing Transactions Regulation mandates reporting of all securities finance transactions (SFT) to trade repositories (TR) in order to maintain transparency in the markets.
The ISLA SFTR working group contains representatives from buy and sell-side participants, vendors and tri-party agents and focuses on Article 4 requirements with member firms and other industry stakeholders.
The working group acts as a conduit between the market and regulatory bodies such as ESMA and National Competent Authorities.
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Image: stock.adobe.com/Stephen 