Non-EEA Undisclosed Agent Lender

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

Question:
Where an EEA broker dealer borrows from an undisclosed agent lender outside of the EEA, who has no regulatory obligation to provide beneficial owner breakdown and linked collateral allocation, how should this be reported?

Best Practice:
It is up to the commercial parties involved in the SFT to understand the status of their counterparties. If the non-EU agent lender or principle cannot or will not provide the data required for SFTR, for the EU reporting counterparty, then they will need to consider their commercial relationship and potentially stop trading with them.

For in-scope participants, reporting under SFTR is mandatory and not subjective. Out-of-scope participants will have to provide corresponding data for their counterparty to remain compliant with the regulators.

See the following best practice for related information on non-EU participants and third-country counterparts (TCs) SFTR-171 (SFTR-204)