SFTR is a major regulatory reporting requirement for anyone transacting repo and other securities financing transactions in the EU, no matter how limited their activity. In order to meet the regulator’s demand for complete, accurate and timely data, firms are devoting considerable resources to the speedy remediation of rejected or unreconciled reports.
This online course will give delegates a grasp of what is required by SFTR in the EU and UK but will also provide a practical insight by looking at specific reporting rules and key data fields.
Purpose of SFTR and key requirements for reporting parties.
SFTR documentation: what to refer to.
What SFTR covers: repos, securities/commodities lending, margin lending.
Who is subject to SFTR (EU and UK), including mandatory delegation and branches.
The role of trade repositories: who they are; what they do (validation and reconciliation); what you send them and what they send back and to others.
Types of report (Action Types) and sequencing.
Data sets, matching fields, cardinality rules (mandatory, conditional or optional) and conditionality links between fields.
Loan data: type, UTI, level of reporting, legal data, term, rate.
Collateral data: type; level of reporting; classifications.
CCP-cleared SFTs and margins.
Collateral re-use reports: actual and estimated.
By the end of the course, delegates should be able to:
identify what trading activities are covered by SFTR, who has to report and by when;
outline the role of trade repositories and recognise the reports sent to and sent out by these entities;
distinguish the types of record to be sent to trade repositories and know in what order they should be sent;
select and describe the data fields required for generic SFT structures, whether collateralized at transaction or portfolio level;
complete a basic calculation of the estimated re-use of collateral.
They should also:
be aware of some of the practical issues that have arisen in reporting;
know where to look for further guidance.
Delegates should have access for reference to a copy of latest ESMA’s Validation Rules. They may also wish to be able to refer after the course to the Regulation itself, the Technical Standards, and ESMA’s Guidelines and Q&As.
This course is suitable for all levels of prior experience with SFTR. Delegates would benefit from a familiarity with repos, securities lending and margin lending but this is not essential.
Who is Richard Comotto?
Richard Comotto is Senior Consultant to the ICMA. Richard is author of the ICMA’s Recommendation for Reporting under SFTR, Guide to Best Practice in the European Repo Market and Repo FAQs as well as director of the ICMA semi-annual survey of the European repo market. He also conducts training for ICMA on repo, the GMRA and SFTR. Richard also acts as a repo expert for the IMF, World Bank, Asian Development Bank and other development organizations, advising on the creation and reform of repo and money markets in emerging markets. He served for 10 years in the Bank of England, including the Bank’s Foreign Exchange Division and on secondment to the International Monetary Fund in Washington DC.
Duration - 3
CPDs - 3