SFTR reporting one year on

 

15 July 2021 Since the start of SFTR reporting on 13 July 2020, ICMA has been collecting and aggregating the SFTR public data on a weekly basis. Following the buy-side go-live in October 2020 and the start of reporting for non-financial counterparties in the EU  in January 2021, the data now covers the entire population of firms required to report under SFTR. ICMA has been publishing separate figures for the UK and the EU since SFTR was split into two separate reporting regimes after the post-Brexit transition period, which ended on 31 December 2020.

Under EU SFTR, firms reported on average per week new SFTs with a loan value of around 18 trillion EUR before Brexit (including the UK), which decreased to around 12 trillion EUR on average after the split of the two regimes. Out of this total, repos (both repurchase transactions and buy/sell backs) accounted for over 95% of the value. On the other hand, under UK SFTR the weekly average loan value of newly reported SFTs has been around 9 trillion EUR with a similar breakdown of SFT types. The two parts are larger than the previous total due to the significant overlap between both regimes. It is also important to note that there are still some data quality issues and inconsistencies, especially around the collateral figures which we hope will improve over time.

The SFTR public data complements existing ICMA publications, such as the European Repo Survey, which ICMA has been publishing on a semi-annual basis since 2001. The latest 40th landmark edition of the Repo Survey released in March 2021 included a detailed analysis of the available SFTR public data, based on the first six months of reporting. ICMA is currently reviewing the European Repo Survey in light of SFTR in order to assess the synergies between the two and help to achieve a more efficient and automated data collection process.

ICMA has led the industry’s SFTR implementation effort for repos through the ERCC SFTR Task Force, which brings together more than 150 firms across the repo market. Based on the Task Force discussions ICMA developed its detailed Recommendations for Reporting under SFTR which complement and supplement the regulatory framework and aim to ensure consistency in firms’ implementation efforts.

Further information on SFTR and ICMA’s related work is available on our SFTR webpage. For the full set of SFTR public data since the reporting start, please visit our SFTR public data page.
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