Pair-Offs and Technical Netting Reporting

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Status: Best Practice Finalised, Last Updated: 26/04/2021

Question:
How should pair-offs and other technical netting be reported?

Best Practice:
When offset borrowing/lending is being netted-off then they should be reported, as such they should be treated as individual component transactions; on the understanding there is no market settlement. Where net-offs are for back office operational purposes then they should not be reported.

If netting occurs, this is at a settlement level and would not impact the reporting of the underlying trades. (SFTR-172)