As part of SFTR reporting, following the analysis of requirements set out in Regulation EMIR REFIT, there is a need to extend the validation process for SFT, margin, and reuse reports. Currently XML messages submitted by participants are rejected upon the first error found in the report. This error is then returned to the participant in a status message together with information about the rejection of the transaction.
The report validation process covers the following XML messages:
- auth.052.001.02 – message concerning SFT transactions
- auth.070.001.02 – message concerning margin
- auth.071.001.02 – message concerning reuse, reinvestment of cash, and sources of funding
The new report validation method expands the scope of errors presented in the auth.031.001.01 message. In this message, the participant will receive information about all errors identified in the report.
Additionally, as part of the implementation of changes to the validation process, a verification of the correctness of the country code assigned to the LEI of the issuer of the security that is the subject of the loan or collateral will be introduced. The validation will be aligned with the description of field Jurisdicition of the issuer in the ESMA SFTR validation rules document.
Materials: Detailed materials regarding the proposed changes were presented during the meeting with participants in November 2025. The updated functional documentation will be provided by the end of May 2026.
Testing: Deployment of the validation changes in the test environment and commencement of testing with participants in September 2026.
Implementation: The implementation of the changes is planned for November 15, 2026.