The European Securities and Markets Authority (ESMA) has published the Guidelines on reporting under the Securities Financing Transactions Regulation (SFTR) and a final report, as well as amended SFTR validation rules and a statement on Legal Entity Identifiers (LEI).
These guidelines apply in relation to the SFT reporting obligation as provided in Article 4 SFTR, the TR obligations under Articles 5(7) and 12 SFTR, as well as the reporting start date as determined in Article 33(2) SFTR. They aim to clarify a number of provisions of SFTR and to provide practical guidance on the implementation of some of those provisions. The guidelines provide further clarification to the following aspects:
The final report on Guidelines on reporting under SFTR contains a detailed assessment of the feedback received from stakeholders to the proposals in the ESMA consultation paper published in May 2019, as well as a more detailed discussion on the market transactions that are not in scope.
The amended SFTR validation rules are fully aligned with the updated XML schemas published in December 2019, as well as with the published LEI statement.
The LEI statement clarifies the expectations with regards to reporting of LEI for issuers of securities used in SFTs, as well as the relevant supervisory actions to be carried out by authorities.