SFTR: A Survival Guide

Financier Press will be publishing SFTR: A Survival Guide on 12 January 2018.

It is the first book of its kind in the world.

Contents

ABOUT Seb Malik
Contents 7
Introduction 12
State of Play 13
SFTR’s place in EU Financial Regulation 14
Who should read this? 16
Compliance Cost 16
Industry Concerns 17
How to use this guide 18
PART I
1 What is SFTR? 23
Application Schedule 25
SFTR’s interface with other EU Law 26
General Notes 26
Acronyms 27
2 What are SFTs? 30
3 Transaction Reporting PILLAR I 32
Who must report? 34
Who should not report? 35
Who are SFT Counterparties? 36
Report to Whom? 37
Reportable Instruments 37
Report new and some old trades 38
When to report by? 38
Frequency – Triggers for Reporting 38
Level II details 39
When not to report 40
4 Transaction Reporting Details 41
Types of SFT Reports 42
Action Types 43
Action & Report Type Combinations 46
Counterparty Identifiers 46
UTI Generation 46
Pecuniary penalties 48
5 SFT Usage Client Disclosure PILLAR II 49
Scope 50
Pre-contractual SFT disclosure 50
Information to be included in the UCITS Prospectus and AIFM disclosure to investors 51
Periodic Reports SFT disclosure 52
Information to be provided in the UCITS half-yearly and annual reports and the AIF’s annual report 53
6 Collateral Reuse PILLAR III 56
What is reuse? 57
When Legal force? 58
Penalties for infringement 58
Reuse restrictions 58
7 Record Keeping Obligation 60
Who? 60
How long? 61
8 Data Protection & Personal Data 62
What is Personal Data? 63
Non-EEA data transfers under GDPR 64
‘Appropriate safeguards’ 65
Binding Corporate Rules 67
Future Developments 67
PART II
9 SFT Product Knowledge 70
SFT Overview 71
Repurchase transaction (Repo) 72
Income payments 74
Risk 74
What are Repos used for? 75
Repos and Central Banks 76
Repos in markets 77
Securities or commodities lending/borrowing (SL) 77
Why borrow, why not purchase? 78
Collateral in SLB 79
Buy-sell/sell-buy back transaction (BSB) 80
Margin lending transaction 81
10 EU SFT Markets Overview 82
Context 82
Overall SFT Market 82
Repos 83
SL 84
ML 84
11 Reports & Public Information 86
12 Key Texts 90
Level I Legislation 90
Level II Legislation 90
ESMA Level III 91
Cost Benefit Analysis 91
Article 29(3) Reports 91
13 Resources 93
14 Bibliography 95
15 References 97