The SFTR regulation (Securities Financing Transactions Regulation) imposes requirements on most entities that enter SFTs (Security Finance Transactions), seeking to improve transparency and reduce risks in securities financing markets.

The following entities are covered by the provisions in SFTR:

  • Financial Counterparties (FC)
  • Non-Financial Counterparties (NFC): undertakings that are not FCs
    NFCs are divided into those who exceed certain thresholds under SFTR and those who fall below these thresholds (called small NFCs).
Trade reporting obligations explained:
 The regulation specifies reporting requirements for the details of SFT(s) (Security Finance Transaction(s) to a trade repository. A trade repository is an entity that centrally collects details about derivative trades in a register to which financial regulators have access for supervision purposes.

The rules’ primary scope is to enhance transparency of the securities financing markets. The implementation requirements follow the 2011 FSB review on Shadow Banking activities defined as ‘traditional banking business not subject to sufficient regulation’.

The FSB identified the following financing products (SFTs) to be within the scope of SFTR:
  • Repurchase transactions
  • Buy-sell; sell-buy back transactions
  • Securities lending/ borrowing
  • Margin lending transactions (prime brokerage)
The main component of SFTR is transaction reporting of new trades and life-cycle events consisting of 155 reportable fields on loan and collateral details. Like the reporting of derivative products specified under EMIR, the reporting according to SFTR is dual-sided, meaning that both counterparties to a trade are subject to the rules.

We can help you meet your reporting obligations
We can help you meet your reporting obligationsIf the trade reporting obligation applies to you under SFTR, Danske Bank offers a trade reporting service to help you meet this obligation. By signing up for the service, you authorise Danske Bank to report on your behalf, all trades between you and Danske Bank, including our subsidiaries within the EU/EEA, to a trade repository.

To start using our reporting service, you must sign up for our Trade reporting Service.

Danske Bank will report your trades to DTCC GTR (Depository Trust & Clearing Corporation – Global Trade Repository).

What is required of you when we report on your behalf?
You must provide us with your legal entity identifier (LEI) and ensure that it is correct and valid for as long as you have outstanding trades. An LEI is a unique identifier that allows us and the trade repository to identify you. Trade repositories are mandated to reject trade reports that do not contain an LEI.

Please refer to Danske Bank's Terms and Conditions for further information about standards, procedures and assumptions applied in relation to our SFTR delegated reporting service here: Terms and Conditions for Trade reporting SFTR and Terms and Conditions for Mandatory Reporting