ESMA UPDATES SFTR Q&A’s

The Q&As were updated to clarify:

• reporting of events that were not duly reported on time
• updates to records of outstanding SFTs by the Trade Repositories based on reports made by the counterparties
• operational aspects concerning the reporting by financial counterparties on behalf of small non-financial counterparties pursuant to the Article 4(3) of SFTR.

The updated set of Q&A complements ESMA’s guidance on reporting under SFTR. This document aims at ensuring that the supervisory activities of the competent authorities under the Regulation converge along the lines of the responses adopted by ESMA. It should also help investors and other market participants by providing clarity on SFTR requirements.

The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of SFTR. It provides responses to questions posed by the general public, market participants and competent authorities in relation to the practical application of the Regulation.

Next steps:

ESMA will periodically review these Q&A and update them where required.