ESMA issues public statement on postponement of the reporting obligations related to SFTs under SFTR and MiFIR.
In order to mitiagte the impact of COVID-19 ESMA published the attached public statement to announce that SFTR reporting start date will be postponed.
We understand that legally they offer a “grace period” for the investment firms and credit institutions, while technically it is a “postponement”.
On one hand the state that competent authorities should not prioritise their supervison action towards the market participants (grace period) and on the other side they state that the TRs will not get their license and ESMA will also not be available to record the details of the SFTs (postponement).
What is still open is by when the TRs will be registered and by when ESMA will be available to record these details, as in our opinion the legal reporting start is not postponed.
We at deltaconX will continue with our initial planning and will be ready to report on behalf of our clients as of April 13th, 2020. Once the TRs are licensed and ESMA is ready to receive reports, we will be in the position to report.
We suggest our clients to take the same approach to the extend possible and not deliberately postpone the go-live longer than needed.