The International Capital Market Association (ICMA) has released an update to its recommendations for reporting under the Securities Financing Transactions Regulation (SFTR). The latest version, like the others that came before, aims to “reduce reconciliation breaks and the consequent operational burden for the industry” as well as enhance the quality of reported data.
The update clarifies several topics, including how to report sponsored repos and other guaranteed or indemnified repos; reporting a pool of security and cash collateral; and reporting the variation margin of sub-portfolios.
The ICMA recommendations “aim to help members interpret the regulatory reporting framework specified by the European Securities and Markets Authority (ESMA) in the EU and the Financial Conduct Authority (FCA) in the UK”. This version is the 10th update since the first SFTR Guide was published in February 2020.
