ESMA Extends KDPW Trade Repository’s Registration to Include SFT Reporting
The European Securities and Markets Authority (ESMA) has decided to extend the registration of the KDPW Trade Repository to include trade reporting under SFTR. The decision takes effect on 7 May 2020.
The KDPW Trade Repository is one of four repositories whose registration has been extended to include SFTR reporting.
KDPW, which operates the Trade Repository under EMIR, has the necessary experience, expertise, resources, as well as a range of technological and procedural solutions necessary to accept and maintain trade reports.
Complementary services offered by KDPW provide participants of the Trade Repository (under SFTR and under EMIR) with clear benefits afforded by the existing KDPW_TR communication interfaces, the ability to meet both obligations by reporting to a single repository, reduced workload, available technological solutions, expert support, as well as low prices, all those factors ensuring a significant reduction of the cost of the reporting obligations.
The Securities Financing Transaction Regulation (SFTR) is a key step of the European Union improving the transparency of securities financing transaction markets. Under SFTR, the obligation of reporting details of SFTs to authorised trade repositories is binding for all market participants, including financial and non-financial entities.
SFTs include securities lending and borrowing, repo (sell-buy-back) and reverse repo transactions in securities and guaranteed rights, and collateral management transactions.
The SFTR opens access to SFT information for European supervisory authorities and improves risk monitoring, supporting safety on the financial markets.
Each entity reporting SFTs is obligated to use LEI code. KDPW, as GLEIF accredited LOU, KDPW provides the LEI issuance service.