Reporting of the SFTs with EU Central Banks

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• Reporting of the SFTs with EU Central Banks

Reporting of the SFTs with EU Central Banks

Status: To Be Reviewed Last Updated: 31/08/2023

Question:
Validation field(s) in scope – 2.00

SFTs to which the counterparty is a member of the European System of Central Banks (ESCB), are only reportable under EU MiFIR and excluded from reporting under EU SFTR.

Best Practice:
ISLA members, and members of other associations, propose that there should be a complete exemption of reporting SFTs to ESCBs under EU MiFIR based on the following facts:

• SFTs with Central banks are not a source of systemic risk, nor are they directly price-forming or a source of market abuse and therefore are not relevant to MiFID/MiFIR transparency aims.

• The regulators can directly source data for SFTs with ESCB(s) from the respective central bank(s), thereby reducing the cost of reporting for market participants and also the cost of collection, processing and analysis.

• Our members note that the UK (FCA) excluded all central bank SFTs from being reported under UK MiFIR. (SFTR-166)