Branch Reporting Requirement Post Brexit

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

Question:
What are the reporting requirements for SFTR and MiFIR for UK and EU based firms?

Best Practice:
When the Brexit transition period ends, firms which are incorporated in the UK and EU will have their reporting obligation decoupled from one another. The result of this decoupling is that UK firms without a branch and UK branches of a 3rd country will cease to have a reporting requirement under EU SFTR and instead, will report their trades via UK SFTR which is regulated by the FCA. In cases where firms are UK based trading and via a branch within the EU, there is a double reporting requirement to report under both UK SFTR and EU SFTR. This decoupling also has implications for UTI exchange, more information regarding this can be found here.

In a written statement on June 23rd 2020, the UK Government confirmed that the reporting obligation for non-financial counterparties (NFCs) under EU SFTR would not be included within UK SFTR, therefore all NFCs that are UK operated, will not have a reporting requirement for SFTR.

ISLA have created a Excel tool based on our current understanding of the reporting requirement for financial counterparties (FCs) when transacting with each other in various cases. As well as the reporting requirements, the tool shows if the reporting is reconcilable (dual-sided), or not (single-sided). Find the reporting requirement tool here.

Please note: This tool is based on our current understanding of reporting requirements which may change prior to the end of the transition period. Find the latest information from the EU and the UK listed below.

Full ESMA statement regarding Brexit reporting for EU counterparties can be found here: Public Statement ESMA74-362-881

UK SFTR information including RTS, regulated by the FCA can be found here. (SFTR-441)