CSDs and securities financing

30 Nov 2016 – On 30 September, the European Securities Markets Authority (ESMA) issued draft technical standards under EU Regulation 2015/2365 on the securities financing transactions (SFTR) for public consultation. Commenting on the standards, ECSDA made two recommendations from a CSD perspective:

1) ESMA should clarify the reporting requirements for intraday securities loans in the context of CSD securities lending and borrowing services aimed at supporting the settlement process;

2) SFT counterparties cannot be expected to report the “CSD participant or indirect participant” where settlement occurs outside of a CSD and the reporting field should be renamed “the intermediary acting on behalf of the reporting counterparty” in the standards.

Download the full ECSDA paper