Delegated Reporting Agreement Sftr
The Master Regulatory Reporting Agreement (MRRA) gives market participants the opportunity to use a single model to help them manage regulatory obligations and provide reporting services under the European Market Infrastructure Regulation (EMIR) and the Securities Financing Transactions Regulation (SFTR). Some say the standard format of the contract will facilitate agreements. Others believe that the document is too complex and too long to be widely adopted. 3. SFTR provides additional legal protection for reporting delegates who are not included in the emir. SFTR specifies, for example, that a delegate is not considered a violation of a legal or contractual restriction on the disclosure of information. This legal protection is not available to delegates under the EMIR Regulation and shows that a widespread delegation was expected of the SFTR`s projects. Buy-side companies can also cause problems with SFT reports to relevant industry bodies and/or their regulator. For Nordea, reporting obligations begin in Phase 1, whereas many of our clients do not start doing so until three, six or nine months later.
Background: The Securities Trading Regulation (“SFTR”) is a European regulation aimed at reducing the risk of a parallel bank. The SFT has been identified as one of the main causes of the financial crisis and, during and after the crisis, regulators are faced with anticipating the risks associated with securities financing. This led to the introduction of a reporting obligation for these FTS. Please read and keep the procedures manual to fully understand how the HSBC SFTR delegated reporting service works and how it can help you with your reporting obligations: the SFTR is an EU regulation. The transactions carried out by the parties within the EU must therefore be in compliance with the regulation. However, the SFTR broadens the scope of territorial application by including transactions carried out by a European branch of one or more third countries. Exceptions: Transactions with SEBC members are excluded from SFTR reports because they are covered by MIFID II requirements and should not be dual-reported. Contacting Nordea customers aims to collect the necessary static data, including the lei and party type, preferences for the delegated report model, pre-matching and UTI production preferences.
CN, NFCs and NFC-s must disclose the details of their transactions to approved central repositories. This obligation can be carried out directly through a central repository or by delegating the operational aspects of the reports to the counterparty or to a third party (which reports on its behalf). For the SFTR, the Buy-Side is responsible for the coverage of alternative investment funds (ALTERNATIF FONDS) and mutual funds in securities (Ucits) that they manage from 11 October.