- ESMA published final report, guidelines on SFTR reporting together with amended validation rules and a statement on the use of legal entity identifiers (LEI).
- Follows ESMA May 2019 proposed guidance on finance transactions.
- Follows ESMA October 2019 issued validation rules, xmls for SFTR reporting.
- Follows ESMA March 2019 webinar on use of legal entity identifier (LEI).
- Aim to clarify SFTR provisions and provide practical guidance on their implementation.
- Contributes to cost reduction for whole reporting chain i.e. counterparties reporting data, TRs which put in place procedures to verify completeness/correctness of data, and authorities, defined in art 12(2) SFTR, using data to supervise stability risks.
- Provide clarity re reporting start date when it falls on non-working day, number of reportable SFTs, population of reporting fields for different types of SFTs, approach used to link SFT collateral with SFT loans, reporting fields for margin data population.
- Population of reporting fields for reuse, reinvestment, funding sources data, feedback generation by TRs and subsequent management by counterparties.
- Namely in case of rejection of reported data and reconciliation breaks, but also provision of access to data to authorities by TRs.
- Contains detailed assessment of feedback received to proposals in consultation of May 2019 and more detailed discussion on market transactions not in scope.
- Clarifies the expectations re reporting of LEI for issuers of securities used in SFTs and relevant supervisory actions to be carried out by authorities.
SFTR validation rules
- Amended SFTR validation rules fully aligned with updated XML schemas published in December 2019 but also with LEI statement.