SFTR aims to improve the transparency of securities financing market and accordingly requires all counterparties to SFTs to report the details of any SFT they have concluded, as well as any modification or termination, to a registered trade repository (TR). The regulation also provides for the direct supervision and registration of TRs by ESMA – the sole supervisor of TRs for the purpose of EMIR and SFTR in the European Union.
TRs are commercial firms that centrally gather and store records of SFTs reported to them. The registration of a TR allows them to be used by counterparties to a SFT to complete their trade reporting obligations under SFTR.
To be registered as a TR, a company must demonstrate it can comply with the requirements of SFTR, including ones that concern operational reliability, safeguarding and recording, as well as transparency and data availability.
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