ESMA: SFTR draft technical standards will not provide certainty
07 September 2018 Paris
Image: Shutterstock
The Securities Financing Transactions Regulation draft technical standards, as proposed by the European Commission, “will not provide certainty, clarity, predictability and consistency”, according to the European Securities and Markets Authority (ESMA).
As a result, ESMA has declined to amend the draft technical standards as proposed by the European Commission, which relate to provisions on the use of legal entity identifiers for branches and unique transaction identifiers for reporting to trade repositories.
The association said the technical standards proposed will “hinder the possibility to take into account international developments and reporting standards agreed at the global level and risk timely alignment with international reporting standards”.
In addition, ESMA stated they would also deviate from, and create an inconsistency with, the currently applicable European Market Infrastructure Regulation reporting standards.
ESMA has therefore not amended the draft technical standards.
ESMA’s regulation requires it to adopt a formal opinion on proposed amendments to its draft technical standards by the European Commission within a six-week period.
The draft technical standards may now be adopted or amended by the European Commission.
As a result, ESMA has declined to amend the draft technical standards as proposed by the European Commission, which relate to provisions on the use of legal entity identifiers for branches and unique transaction identifiers for reporting to trade repositories.
The association said the technical standards proposed will “hinder the possibility to take into account international developments and reporting standards agreed at the global level and risk timely alignment with international reporting standards”.
In addition, ESMA stated they would also deviate from, and create an inconsistency with, the currently applicable European Market Infrastructure Regulation reporting standards.
ESMA has therefore not amended the draft technical standards.
ESMA’s regulation requires it to adopt a formal opinion on proposed amendments to its draft technical standards by the European Commission within a six-week period.
The draft technical standards may now be adopted or amended by the European Commission.
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