Dumping Markets Reporting

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

Question:
What is the impact on the reporting obligation of dumping markets. The issue has been raised for those markets where participants can unilaterally deliver assets into the custody of the counterparty and, in many cases, the counterparty is unaware for up to several days later.

Best Practice:
Back-office or operations desks generally monitor receipt of dumping market assets in omni accounts and allocate the SFT returns to specific transactions; else reject them if unknown. Upon allocation, the associated message template should be generated, i.e. an ETRM or MODI, depending on full or partial return (excluding full returns on fixed-term SFTs). (SFTR-213)