Addressing the Reference Data Challenges of SFTR
, 11 September 2019
The EU’s Securities Financing Transactions Regulation (SFTR) - designed to increase transparency around activities that are broadly categorised as shadow banking - comes into force in April 2020. The regulation focuses mainly around securities financing and by extension securities lending and rules around the use of collateral. This paper looks at SFTR’s requirements with specific focus on its reference data aspects. It discusses the challenges involved in populating key SFTR report fields that require robust reference data, and discusses how these should be dealt with.