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SFTR

SFTR delegated regulation adopted by Commission

Last week, the European Commission adopted several level II texts relating to the Securities Financing Transaction Regulation (SFTR). The rules require that transactions in repurchase agreements, securities lending/borrowing, commodities lending/borrowing, buy/sell back and “reuse” of collateral are reported to authorised Trade Repositories. The rules will apply to a wide range of entities, including non financial counterparties, and will impact some in energy and commodities.

After several delays, the adoptions allow the start dates of the rules to be broadly determined.  The exact dates will be known when the rules are published in the Official Journal of the European Union. The rules apply to Investment Firms and Credit Institutions 20 days and 12 months after publication, in Q2 2020. They will apply to Non Financial Counterparties 20 days and 21 months after publication, in Q1 2021. Many in energy and commodities will need to consider which transactions fall within the definition of the items to be reported, in particular “commodities lending”.

The adopted regulation can be found here, and the supporting  annex  with field details here.

About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.

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