Huge trade volumes reported under SFTR
23 July 2020 London
Image: Peshkova/Shutterstock.com
After the much anticipated Securities Financing Transactions Regulation (SFTR) go-live on the 13 July, almost 1.5 million trades have been reported in week one.
The International Capital Market Association (ICMA) has recorded that firms have reported 1.44 million securities financing transactions (SFTs) with a cash value of €14.3 trillion and collateral value of €17.8 trillion.
Repos and buy/sell-backs accounted for 398,006 transactions which represents 27.7 percent of the total trade reported and a total cash value of €13.5 trillion at 94.7 percent and collateral value of €17.5 trillion at 98.4 percent.
Banks and investment firms, as well as central counterparties (CCPs) and central securities depositories (CSDs), have had an obligation to report all new SFTs and subsequent life-cycle events to authorised trade repositories (TRs) since 13 July.
The TRs authorised under SFTR - the Depository Trust and Clearing Corporation, REGIS-TR, UnaVista and the Central Securities Depository of Poland - are required to publish a set of summary statistics for the previous week.
The repo market is shown to be the largest by value, while securities lending is the largest by number of transactions, with 398,006 transactions in new repo but just over 1 million new securities lending trades.
Average deal size in repo is of about €34 million but only some €666,000 in securities lending.
A large percentage of repo business is CCP-cleared and that much of it is implemented across trading venues, although not all of this is electronic and the over-the-counter (OTC) market remains significant.
ICMA is expected to be collecting data each week, and will provide regular detailed analysis which will contribute to enhanced transparency of the repo market.
The International Capital Market Association (ICMA) has recorded that firms have reported 1.44 million securities financing transactions (SFTs) with a cash value of €14.3 trillion and collateral value of €17.8 trillion.
Repos and buy/sell-backs accounted for 398,006 transactions which represents 27.7 percent of the total trade reported and a total cash value of €13.5 trillion at 94.7 percent and collateral value of €17.5 trillion at 98.4 percent.
Banks and investment firms, as well as central counterparties (CCPs) and central securities depositories (CSDs), have had an obligation to report all new SFTs and subsequent life-cycle events to authorised trade repositories (TRs) since 13 July.
The TRs authorised under SFTR - the Depository Trust and Clearing Corporation, REGIS-TR, UnaVista and the Central Securities Depository of Poland - are required to publish a set of summary statistics for the previous week.
The repo market is shown to be the largest by value, while securities lending is the largest by number of transactions, with 398,006 transactions in new repo but just over 1 million new securities lending trades.
Average deal size in repo is of about €34 million but only some €666,000 in securities lending.
A large percentage of repo business is CCP-cleared and that much of it is implemented across trading venues, although not all of this is electronic and the over-the-counter (OTC) market remains significant.
ICMA is expected to be collecting data each week, and will provide regular detailed analysis which will contribute to enhanced transparency of the repo market.
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