Securities Financing Transactions Regulation (SFTR) Phase 3 To Start – Finance and Banking



Luxembourg:

Securities Financing Transactions Regulation (SFTR) Phase 3 To Start


To print this article, all you need is to be registered or login on Mondaq.com.

Amongst the requirements imposed by the SFTR is an obligation to
report certain transaction data to trade repositories (legal
persons that collect and maintain records of SFTs and derivative
transactions subject to EMIR). The objective is enhanced
transparency of the SFT market – one of the main goals the
SFTR is meant to pursue (taking a similar approach as that under
EMIR with respect to derivative transactions).

The reporting of SFTs is being introduced gradually, starting
from 11 July 2020 with phased applicability depending on the
type of counterparties involved. As of 12 October 2020,
“phase 3” will start. In practice this means that
from this date, the SFTR reporting obligation will become
applicable to:

  • authorised insurance undertakings or reinsurance
    undertakings;

  • authorised UCITS and, where relevant, their management
    company;

  • authorised alternative investment funds managed by alternative
    investment fund managers;

  • authorised or registered institutions for occupational
    retirement.

Going forward, these entities will be required to report the
details of the SFTs entered into to trade repositories.

The transactions which qualify as SFTs under the SFTR are
repurchase transactions, securities or commodities lending
transactions, securities or commodities borrowing transactions,
buy-sell back and sell-buy back transactions, and margin lending
transactions.

The relevant data for any transaction qualifying as an SFT must
be reported no later than on the working day following the
transaction’s conclusion, modification or termination. Which
specific data must be reported has been clarified by way of
regulatory technical standards (RTS).

Arendt & Medernach and Arendt Regulatory & Consulting
combine their legal and operational strengths to offer a range of
bundled and joint services in the fields of financial derivative
instruments and securities financing transactions, as well as the
associated regulatory background in Luxembourg.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Finance and Banking from Luxembourg

Economic Substance In The Cayman Islands

Mourant

The International Tax Co-operation (Economic Substance) Act (2020 Revision) (as amended, the Substance Law) imposes economic substance requirements on companies, LLCs and LLPs in the Cayman Islands.

Using Jersey For Your UK REIT

Mourant

Following a revision to Chapter 7 of the Listing Rules of the The International Stock Exchange, it has now become easier to list the shares of a Jersey company that qualifies as a REIT for UK purposes.

Channel Islands Funds Quarterly Update: Q4 2020

Ogier

Two amendments to Jersey’s Economic Substance legislation https://statesassembly.gov.je/assemblypropositions/2020/p.172-2020.pdf were lodged by the Minister for External Relations on 29 December.



Source link

Add a Comment