The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has released today the long-awaited Level 3 documents.
They have published the following documents:
- The Final Reporting Guidelines, as well as the accompanying Final Report
- Amended SFTR Validation Rules, and
- A statement on LEIs granting a 12-month grace period for the reporting of LEIs of third-country issuers
The guidelines provide clarity as to the following aspects:
- the reporting start date when it falls on a non-working day
- the number of reportable SFTs
- the reporting fields for different types of SFTs
- the approach used to link SFT collateral with SFT loans
- the reporting fields for margin data
- the reporting fields for reuse, reinvestment and funding sources data
- the generation of feedback by TRs and its subsequent management by counterparties
- the provision of access to data to authorities by TRs
The LEI statement clarifies the expectations with regards to the reporting of the Issuer LEI, if the Issuer is established in a third-country. (The LEI does not need to be reported during the first 12 months)
Finally, ESMA has updated the SFTR validation rules to align the validation rules with the updated XML schemas which were published in December 2019. Also the exemption of the LEI obligation for third-country issuers has been taken into account.