The European Commission has adopted a package of new measures under the Securities Financing Transactions Regulation (SFTR), with the aim of increasing the transparency of the securities financing market.
SFTR requires that transactions related to securities financing are reported to, the “trade repository”, a central database. The new acts include details on the authorisation of trade repositories as well as the rules they are subject to, including reporting requirements. It is believed that reporting will lead to an improved surveillance of significant market developments, according release from the Commission.
The new acts have been submitted to the European Parliament and Council for scrutiny, after which the acts will be published in the Official Journal.
European Commission vice-president for financial stability, financial services and capital markets union Valdis Dombrovskis, said: “The package adopted today is a crucial element to ensure that, as risks move outside our highly regulated banking sector, they do not disappear from the radar screen of supervisors.
“It will make market-based financing activities more transparent and allow public authorities to better observe market developments. Supervisors will be able to act timely in order to mitigate potential risks related to securities financing transactions.”
Earlier this year, RegTek.Solutions, a regulatory reporting solutions provider, launched a data quality assurance solution for the SFTR.
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