This page describes what ABN AMRO and you as a customer should do to comply with the requirements under SFTR. It also provides information about ABN AMRO’s status in relation to SFTR.
The SFTR is an (EU) reporting regime that increases transparency in the securities financing markets and applies to trades carried out by parties incorporated within the EU (including non-EU branches) and EU branches of a third-country parties in securities financing transactions ("SFTs").* Branches not located in the European Union of these parties are also subject to this reporting obligation, as are branches established in the European Union of third country partiesSecurities borrowing and lending, repurchase agreements and reverse repurchase agreements, buy-sell back and sell-buy-back trades and margin lending are all SFTs in scope of SFTR.
It mandates parties to a trade to report the trade details to a trade repository at T+1 and subsequently report any changes as well as daily collateral and valuation for the life of the trade.
*trades with ESCB members are excluded from the SFTR reporting as they are covered by the MIFID II requirements and should not be double-reported
SFTR mandates that both financial and non-financial counterparties report details of their SFTs to a trade repository. This includes information on the transaction, the collateral used and the parties involved.
SFTR aims to mitigate systemic risk, enhance financial stability, and provide a more comprehensive view of the securities financing market to regulators and market participants.
The regulation mandates a standard format on how to communicate with Trade Repositories, endorsing the ISO20022 standard for regulatory reporting. Reporting covers distinct areas:
