ISLA CEO calls on global regulators to revisit SFT reporting alignment
29 May 2020 London
Image: Rawpixel.com/Shutterstock.com
Global regulators must better align their reporting requirements for securities financing markets to maximise transparency, says the International Securities Lending Association’s (ISLA) CEO, Andrew Dyson.
With the EU’s Securities Financing Transactions Regulation (SFTR) due to come into effect in July, the time has come to revisit the issue of better and more coordinated actions at a global level, Dyson writes in his latest blog post.
Such an effort would be required to get the most out of the transparency such a detailed reporting regime will afford, he explains.
“I have said many times in this blog that SFTR has presented considerable challenges to the market, and that we have discussed openly and candidly with our members as well as the regulatory community about the need for such detailed reporting measures.
“This debate has been further fuelled by the absence of similar regulatory regimes elsewhere, especially in North America where the current administration sees this type of reporting in a very different light.”
Dyson goes on to note that the “apparent lack of global coordination” raises questions in Europe where firms may feel the relatively high level of regulatory scrutiny “puts them at some sort of commercial disadvantage”.
The G20 meeting scheduled for November in Saudi Arabia, Dyson says, represents “a perfect opportunity” to address these issues and lay down foundations to foster closer alignment on macro-financial stability issues.
His call for collaboration on reporting regimes dovetails with similar ambitions voiced by the chair of ISLA’s Council for Sustainable Finance (ICSF), Radek Stech, who has outlined a vision of creating a global network of partners to adopt a set of universal principles for sustainable securities lending (PSSL).
Since forming in February, ICSF has partnered with regional securities lending associations in Canada and South Africa, and Asia to develop and promote its PSSL for global acceptance.
With the EU’s Securities Financing Transactions Regulation (SFTR) due to come into effect in July, the time has come to revisit the issue of better and more coordinated actions at a global level, Dyson writes in his latest blog post.
Such an effort would be required to get the most out of the transparency such a detailed reporting regime will afford, he explains.
“I have said many times in this blog that SFTR has presented considerable challenges to the market, and that we have discussed openly and candidly with our members as well as the regulatory community about the need for such detailed reporting measures.
“This debate has been further fuelled by the absence of similar regulatory regimes elsewhere, especially in North America where the current administration sees this type of reporting in a very different light.”
Dyson goes on to note that the “apparent lack of global coordination” raises questions in Europe where firms may feel the relatively high level of regulatory scrutiny “puts them at some sort of commercial disadvantage”.
The G20 meeting scheduled for November in Saudi Arabia, Dyson says, represents “a perfect opportunity” to address these issues and lay down foundations to foster closer alignment on macro-financial stability issues.
His call for collaboration on reporting regimes dovetails with similar ambitions voiced by the chair of ISLA’s Council for Sustainable Finance (ICSF), Radek Stech, who has outlined a vision of creating a global network of partners to adopt a set of universal principles for sustainable securities lending (PSSL).
Since forming in February, ICSF has partnered with regional securities lending associations in Canada and South Africa, and Asia to develop and promote its PSSL for global acceptance.
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