What is SFTR reporting?

What is SFTR reporting?

ESMA regulates securities financing activities by setting out reporting requirements, data access, collection, verification, aggregation, comparison and publication of data on securities financing transactions (SFTs) by trade repositories (TRs).

Who needs to report under SFTR?

SFTR is a two-sided reporting requirement, with both collateral provider (borrower) and collateral receiver (lender) required to report their side of the SFT to an approved Trade Repository on trade date +1 (T+1). All new SFTs, modifications of open SFT’s and terminations of existing SFTs must be reported daily.

What are SFT trades?

What are SFTs? Securities financing transactions (SFTs) allow investors and firms to use assets, such as the shares or bonds they own, to secure funding for their activities.

What is the purpose of SFTR?

Securities Financing Transactions Regulation (SFTR) is a European Union regulation, introduced in January 2016, that aims to reduce systemic risk in the Securities Financing Transaction (SFT) market by increasing transparency and surveillance.

What is collateral reuse SFTR?

Recital 17 EU Securities Financing Transactions Regulation. Reuse of collateral provides liquidity and enables counterparties to reduce funding costs. However, it. tends to create complex collateral chains between traditional banking and shadow banking, posing. financial stability risks.

What is the difference between securities lending and repo?

A key difference between repo and securities lending is that the repo market overwhelmingly uses bonds and other fixed-income instruments as collateral, whereas an important segment of the securities lending market is in equities.

Why was SFTR introduced?

Regulators have repeatedly demanded transparency in such transactions to avoid risk and further prevent their negative impact on markets. Hence SFTR was introduced in January 2016 by the European Commission to avoid the risk in SFT for banks and to bring transparency.

Is SFTR part of Mifid?

Banks, investment firms, asset managers and other financial institutions have to comply with a number of transaction-based regulatory regimes, such as the European Market Infrastructure Regulation (EMIR), the Money Market Statistical Reporting (MMSR) Regulation, the Markets in Financial Instruments Directive II/ …

Are repos fixed-income?

In a repo, one party sells an asset (usually fixed-income securities) to another party at one price and commits to repurchase the same or another part of the same asset from the second party at a different price at a future date or (in the case of an open repo) on demand.

Who is SFTR applicable for?

SFTR transaction reporting has a wide industry scope in that it applies to both financial and non-financial counterparties, and generally, both sides of any transaction are required to be reported (ie it isn’t a dealer-only style obligation) (see FAQ 10 for the exceptions to this rule).

What is publication 590-a of the tax code?

Publication 590-A discusses contributions to individual retirement arrangements (IRAs). An IRA is a personal savings plan that gives you tax advantages for setting aside money for retirement. For information about distributions from an IRA, see Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

What is IRS Publication 590-individual retirement arrangements (IRAs)?

What Is IRS Publication 590: Individual Retirement Arrangements (IRAs)? IRS Publication 590, entitled “Individual Retirement Arrangements (IRAs),” refers to an IRS document that outlines rules for individual retirement accounts (IRAs).

What’s new about 590-b?

Publication 590-B – Introductory Material What’s New Coronavirus-related distributions. Recent legislation contains special rules that provide for tax-favored withdrawals, income inclusion, and repayments for certain individuals who were impacted by the coronavirus in 2020.

How many footnotes are there in form 590-b?

This is the nontaxable portion of all your distributions” field contains 460 Footnote: From Worksheet 1-1 in Pub. 590-B. “14. Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2020 and earlier years” field contains 340 “15c. Subtract line 12 from line 7.