SFTR

Who has reporting obligations?

EU SFTR

Both Financial Counterparties and Non-Financial Counterparties* have the reporting obligations, which cover the following:

1. EU based entities including all its branches irrespective of where they are located
2. Non-EU entities where the SFT is concluded by an EU based branch

*Exclude NFC-

Reporting obligations for non-financial counterparties (except NFC-) only commenced on 11 January 2021.

UK SFTR

Only Financial Counterparties have the reporting obligations, which cover the following:

1. All UK based entities
2. Third country branches of UK based entities

Non-financial counterparties don’t have the reporting obligations.

Mandatory delegated reporting under EU SFTR

If the transaction was entered between a financial counterparty and a small non-financial counterparty (NFC-), the financial counterparty is required to report for both sides.

A NFC- means a non-financial counterparty which does not exceed the limits of at least 2 of the 3 following criteria:
(a) balance sheet total: EUR 20 000 000;
(b) net turnover: EUR 40 000 000;
(c) average number of employees during the financial year: 250.

Who do you report to?

Authorised Trade Repositories (TRs) under SFTR.

When do reports have to be made?

Reports are required to be submitted to an authorised TR by no later than one working day after the SFT has been made (T+1).

What information needs to be reported?

The SFTR will require the following information to be included:

• Counterparty data, including Legal Entity Identifiers (“LEIs”)
• Loan and collateral data, including Unique Transaction Identifiers (“UTIs”)
• Margin data
• Reuse information

SFTR will also apply to outstanding trades

For the transactions that are entered on or before the reporting start date, they must be reported if they either:

(a) have a remaining maturity exceeding 180 days after the reporting start date; or

(b) have an open maturity and actually remain outstanding for 180 days after the reporting start date. In this case, the transactions must be reported within 190 days of the reporting start date.

How can TRAction assist you with the SFTR reporting?

TRAction provides clients with delegated reporting solutions in accordance with the reporting requirements outlined above. If you are wondering how much we charge, see our pricing schedules here.

If you would like to get further information, feel free to contact us.