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MiFID II/R and SFTs
While securities financing transactions (SFTs) are not in themselves MiFID instruments, they are nonetheless transactions in MiFID instruments and the working assumption is that SFTs, including repo and securities lending, are in scope of MiFID II and MiFIR, unless they are specifically excluded.
 
ICMA has focused its advocacy efforts where the regulatory requirements are ambiguous, disproportionately burdensome on SFT liquidity providers and users, or simply inappropriate. In particular, ICMA has focused on:
  • Transaction reporting;
  • Pre- and post-trade transparency; and
  • Best execution reporting.
A summary of these and other MiFID II/R issues with respect to SFTs can be found in an ICMA FAQ.
 
See also: MiFID II/R implementation (covering primary markets, secondary markets, repo markets and asset management).


Other resources:
 
Q3 2017 Quarterly Report: MiFID II/R implementation: securities financing transactions
 
A briefing note on MiFID II/R costs and charges for fixed income market-makers (bonds and repo)
 
A discussion paper on MIFID II/R best execution reporting and SFTs
(note that clarification has since been provided that SFTs are exempt from RTS 27, but not RTS 28)