SFT Transactions Reporting Deadline

UCITS management companies and AIFMs will be required to report all relevant SFT transactions concluded by funds under management with effect from 11 October 2020. This reporting obligation is similar to that imposed on counterparties who enter into certain derivative contracts under the EMIR regime and fund managers can rely on delegates to comply with this reporting obligation. SFT transactions are defined as including repurchase agreements, reverse repurchase agreements, securities lending agreements, commodities lending agreements, securities borrowing agreements, commodities borrowing agreements, margin lending and buy-sell back transactions or sell-buy back transactions.

ESMA has published guidelines to provide greater clarity on the reporting process.