15 December 2021
Amendments to the Terms and Conditions of communication with the Securities Financing Transactions Trade Repository coming into force on 29 December 2021:
Resolution No. 1511/2021
of the KDPW Management Board of 14 December 2021
KDPW has updated the Terms and Conditions of communication with the Securities Financing Transactions Trade Repository. In the updated version of the Rules, among others, the provisions concerning the transmission of feedback messages by the Repository system to participants were amended to be more precise and a rule for the transmission of information- sent by KDPW - regarding amendments of the Rules to the e-mail address of a person authorized by a participant to access the SFTR trade repository application was laid down. Please pay attention especially to the provisions regarding the delivery effectiveness of the aforementioned messages and information.
5 November 2020
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its set of Questions and Answers relating to reporting under the Securities Financing Transactions Regulation (SFTR):
13 July 2020
KDPW Launches the SFTR Trade Repository Service
KDPW has launched the trade repository service for securities financing transactions (SFTR trade repository). The new reporting obligations are imposed by the European Union’s Securities Financing Transactions Regulation (SFTR). The SFTR requires the reporting of SFT (securities financing transaction) details to authorised trade repositories as an obligation of all market participants, including financial and non-financial entities.
The reporting obligation came into force on 13 July 2020. The original effective date was 13 April 2020; however, in view of the coronavirus pandemic, it was postponed by European capital market supervisor, ESMA.
- securities lending and borrowing;
- repos and reverse repos in securities and guaranteed rights;
- buy-sell-back and sell-buy-back transactions in securities, commodities, and guaranteed rights;
- collateral management transactions.
As of 7 May 2020, ESMA extended the registration of the KDPW trade repository to include the reporting of transactions under the SFTR. KDPW, which has operated a trade repository under EMIR for a number of years, has the necessary experience, expertise, resources, and a range of technological and procedural solutions to collect and maintain trade reports.
The complementary services offered by KDPW provide participants of the trade repository (both under SFTR and EMIR) with a range of key benefits offered by KDPW’s existing communication interfaces, the option of meeting both reporting obligations in a single trade repository, reduction of the workload, the availability of off-the-shelf technology solutions and expert support, as well as an attractive price list which largely reduces the cost of the reporting obligations.
The SFTR ensures that European supervisory authorities have access to details of securities financing transactions and aims to improve risk monitoring tools, which should improve the safety of the financial markets.
Each entity trading in SFT is required to hold a legal entity identifier (LEI) used in reporting. As an LOU accredited by the GLEIF, KDPW offers the LEI issuance and maintenance service.
Who is required to report SFT details to authorised trade repositories?
The obligation of reporting SFT to authorised trade repositories applies to all business entities in the European Union, including both financial and non-financial entities (irrespective of the business sector) such as:
- investment firms;
- credit institutions;
- insurance/reinsurance establishments;
- UCITS (undertakings in the collective investment in transferable securities);
- AIF (alternative investment funds);
- pension funds;
- CCPs and CSDs.