NSA views on reporting and transparency of securities financing transactions (SFTR)

January 05, 2015

Nordic Securities Association publishes its views on the Commission proposal for a regulation on reporting and transparency of securities financing transactions. 

We are pleased with the improved transparency regarding securities lending and repo markets but are worried about the additional costs the detailed proposals might bring to this important market. Especially the requirements regarding rehypothecation are proposed to be implemented too quickly taking into account the huge amount of open collateral agreements that would need to be renegotiated. 

With few rather small amendments and additional phase-in periods this regulation would better fit into the current Better Regulation agenda. These are further discussed in our policy paper.