On September 30, 2016, ESMA published a consultation paper (ESMA/2016/1409) on draft regulatory technical standards ("RTS") and draft implementing technical standards ("ITS") implementing the Regulation on reporting and transparency of securities financing transactions ((EU) 2015/2365) (the "SFT Regulation").
The SFT Regulation will require market participants to report details of securities financing transactions ("SFTs") to an approved EU trade repository ("TR"). The main issues addressed are:
- RTS and ITS procedure and criteria for registration as a TR;
- RTS and ITS on the use of internationally agreed reporting standards, the reporting logic and main aspects of the structure and content of SFT reports;
- RTS requirements relating to transparency of data, data collection, aggregation and comparison; and
- RTS on access levels for different competent authorities.
ESMA also proposes amendments to existing technical standards implementing requirements relating to TRs under the European Markets Infrastructure Regulation ("EMIR"). ESMA states that the amendments are needed to ensure a level playing field for market participants in respect of registration and access rules. ESMA is consulting on the following:
- consolidated amended text of RTS on registration of TRs under EMIR; and
- amendments to RTS on access levels under EMIR.
The consultation will close on November 30, 2016. ESMA will use the feedback it receives to finalize its draft technical standards, which are to be submitted to the European Commission for endorsement by the end of Q1 or beginning of Q2 2017. It is expected that the finalized implementing measures will become applicable from 2018.
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