Securities Lending and Regulatory Reporting: Change in approach on reporting the termination of securities loans under SFTR
Clearstream Banking1 informs clients that effective
immediately
Securities Lending, as part of the Clearstream service offering, comes with reporting obligations under the Securities Financing Transaction Regulation (SFTR) as loan transactions qualify as Securities Financing Transactions (SFTs). Clearstream Banking ensures regulatory reporting both for own obligations but also provides support to borrowers and lenders in relation to their reporting needs.
To align with the applicable regulations, Clearstream Banking will change the approach for reporting the termination of securities loans after a lender recall or a borrower return.
The current reporting approach is based on the “Termination Date” technique consisting of reporting the loan closure through field 2.15 LN_TerminationDate once the securities are redelivered and the loan is effectively closed.
The new approach will be based on updating the loan with an approaching termination date through a modification of field LN_MaturityDateEndDate as soon as the upcoming termination date is known following a relevant notification (recall/return).
For more information on SFTR obligations, clients should refer to the ESMA SFTR Guidelines and Section 4.9.5 “Termination of an SFT”.
Further Information
For further information, clients may contact Clearstream Banking Client Services or their Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG clients using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany, and registered in Register B of the Amtsgericht Frankfurt am Main, Germany, under number HRB 7500.