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The Securities Financing Transactions Regulation (SFTR) is the EU’s answer to the Financial Stability Board’s policy framework for addressing shadow banking risks in securities lending and repo What is SFTR? “The introduction of reporting for SFTs is significant,” says Pauline Ashall, capital markets partner at Linklaters What is the industry doing? “I think the industry has evolved quite quickly,” says Talks, who adds that the European Securities and Markets Authority (ESMA) has been explicit about reporting action but not delegation, which although not ideal, does mean that firms have been able to adapt infrastructure to prepare for the reporting involved
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