Evergreen Reporting

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Status: Best Practice Finalised, Last Updated: 25/05/2021

Question:
How should a new evergreen SFTs be reported?

Best Practice:
Some parties book fixed-term evergreens as repos with a repurchase date at the end of the minimum notice period and, each business day, automatically move the repurchase date forward by one business day until it is terminated. If the parties have agreed that this is the legal form of the transaction, then such an evergreen repo should be reported as it is booked.

Distinguishing difference is where one party books with a term date and the other does not. It is recommended that an evergreen flag is used to identify such SFTs and to ensure that the term dates are populated consistently between counterparties.

An evergreen trade should be booked as per the terms of the trade that are agreed with the counterparty at the time of trade execution. This is often, but not always, detailed on a confirmation or term sheet.

There are 2 ways of booking an evergreen trade, as follows:

Method 1 - X Day Evergreen with Term Date
2.14 Maturity Date = DD/MM/YY
2.22 Termination Optionality = EGRN

Method 2 - X Day Evergreen without Term Date
2.14 Maturity Date = Null
2.22 Termination Optionality = EGRN (SFTR-175)