Four industry associations have grouped together to create a new master reporting agreement for upcoming securities financing regulations and existing derivatives rules.
The International Securities Lending Association (ISLA), along with three other industry bodies, are aiming to put together a standard agreement template for both mandatory and delegated reporting of securities financing and derivatives transactions.
The purpose of the new agreement is to provide an agreement that banks and market participants can use for both the Securities Financing Transactions Regulation (SFTR) and derivatives reporting mandate – European Market Infrastructure Regulation (EMIR).
Much like SFTR is aiming to do for securities finance transactions, EMIR aimed to increase transparency and reduce the risks associated with the derivatives market.
The new securities finance reporting rules in Europe will require firms to report a total of 155 fields on a T+1 or S+1 basis for their securities lending and repo trades, in a bid to increase transparency into securities financing transactions such as margin lending and repo.
ISLA is now inviting industry participants to have input on their preferences regarding a number of threshold questions on scope, structure, approach and process.
The other associations involved are the Futures Industry Association, International Capital Market Association and the International Swaps and Derivatives Association.