ISLA updates SFTR report modeller
02 March 2020 London
Image: Shutterstock
The International Securities Lending Association (ISLA) has updated its report modeller for the Securities Financing Transaction Regulation (SFTR) to reflect recent changes to the regulatory technical standards (RTS).
As of 13 April, the first phase of SFTR will require EU-incorporated or located entities to submit detailed reports of all securities financing transactions to authorised trade repositories.
ISLA modeller was last published on 27 November 2019 and therefore was not in total alignment with the details of the level three SFTR guidelines which were released by the European Securities and Markets Authority in January.
The new modeller includes repo fields required to support structured finance trades, and therefore now supports all reportable products under ISLA’s governance, the association explains.
In total, SFTR sets out 155 reporting fields for transactions, of which 118 are applicable to repo.
ISLA says the update was in response to demand from its members and as a result now provides “the most comprehensive working model of the RTS to-date”.
Commenting on the update in his latest blog post, ISLA CEO Andrew Dyson says: “I want to thank our in-house SFTR team for taking the time to incorporate the feedback and requests of our members in this latest release.”
Since January the European Commission has been forced to issue further clarifications on aspects of the level three text. This includes confirming that third-country alternative investment funds are not required to report under SFTR, as was widely believed immediately after the January release.
Market participants welcomed the news but several key areas of uncertainty remain, including around whether failed deliveries of securities should be reported and the suitability of the formula for calculating collateral re-use, among other areas.
As of 13 April, the first phase of SFTR will require EU-incorporated or located entities to submit detailed reports of all securities financing transactions to authorised trade repositories.
ISLA modeller was last published on 27 November 2019 and therefore was not in total alignment with the details of the level three SFTR guidelines which were released by the European Securities and Markets Authority in January.
The new modeller includes repo fields required to support structured finance trades, and therefore now supports all reportable products under ISLA’s governance, the association explains.
In total, SFTR sets out 155 reporting fields for transactions, of which 118 are applicable to repo.
ISLA says the update was in response to demand from its members and as a result now provides “the most comprehensive working model of the RTS to-date”.
Commenting on the update in his latest blog post, ISLA CEO Andrew Dyson says: “I want to thank our in-house SFTR team for taking the time to incorporate the feedback and requests of our members in this latest release.”
Since January the European Commission has been forced to issue further clarifications on aspects of the level three text. This includes confirming that third-country alternative investment funds are not required to report under SFTR, as was widely believed immediately after the January release.
Market participants welcomed the news but several key areas of uncertainty remain, including around whether failed deliveries of securities should be reported and the suitability of the formula for calculating collateral re-use, among other areas.
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