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SFTR technical standards: Turning data into intelligence
Journal of Securities Operations & Custody,
10
(4),
305-314
(2018)
Abstract
The paper provides insights into the implementation in the European Union of the Financial Stability Board (FSB) initiatives related to securities financing transactions (SFTs). Securities financing transactions regulation (SFTR) sets out requirements on transparency of SFTs and of reuse. The draft technical standards leverage on existing systems, processes and formats and establish end-to-end use of ISO 20022 extensible markup language (XML). In addition, given the pivotal role of collateral, the reporting requirements provide for a comprehensive data collection of key data elements relating to the collateral and type of collateralisation. The extensive use of ISO 20022 XML should also contribute to enhanced data quality and facilitate the data aggregation and comparison between authorities. Finally, SFTR would also contribute to a better assessment by FSB of risks related to the use of SFTs.
Keywords: non-bank financing; securities financing transaction (SFT); transparency; end-to-end ISO 20022 extensible markup language (XML); collateral reporting; data quality; EU transaction reporting rules; Financial Stability Board (FSB) global data collection
The full article is available to subscribers to the journal.
Author's Biography
Nikolay Arnaudov is senior policy officer at the Market Department at ESMA. He has been working for ESMA since January 2013 where he has been fully dedicated to trade repositories in all the different aspects such as policy work, registration and supervision. He led ESMA’s work on Level 2 measures under SFTR. Prior to working at ESMA, Nikolay worked at the Chairman’s Office at the Spanish CNMV with particular focus on market infrastructures. Before that he worked at the Directorate General Internal Affairs at Banco de España. Nikolay has a degree in Business Administration by Universidad Carlos III de Madrid. He is interested in derivatives, SFTs, regtech, financial stability, behavioural finance, market infrastructures and geopolitics.
