5. Securities Financial Transaction Regulation

This topic contains the following subtopics:

1)Introduction

2)Static Type Maintenance

3)Treasury Customer Additional Maintenance

4)Securities Instrument Definition

5)Securities Repo Contract Online

6)List of Glossary - SFTR

5.1 Introduction

Due to a lack of data, regulators and supervisors had difficulty anticipating the risks in the securities financing trans­actions (SFT) during the financial crisis and thereafter.

In 2015, the European Union (EU) adopted the securities financing transactions regulation (SFTR) to increase the transparency of SFTs. SFTR covers three key requirements:

•Transaction reporting: Financial and non-financial counterparties must report their SFTs to central databases known as trade repositories.

•Disclosure obligation: Information on the use of SFTs is disclosed to investors in the regular reports and pre-investments documents issued by the funds.

•Collateral reuse obligation: Transparency on the reuse of collateral is required, such as disclosure of risks and the obligation to acquire prior consent.

5.2 Static Type Maintenance

Context:   

This topic provides the instruction to maintain static types which are used to parameterize the SFTR reporting.

note: All fields marked with an asterisk    (*) are mandatory.

1.On the Home page, enter CODTRTYP in the text field and then click the next arrow.

Step Result:   Treasury Static Type Maintenance screen is displayed.

Figure 5.1: Treasury Static Type Maintenance

2.On the Treasury Static Type Maintenance screen, specify the details, and click Save to record the new maintenance.

Table 5.1: Static Maintenance Types describes the static maintenance types.

Table 5.1: Static Maintenance Types

For more information on the fields and combination of parameters to use in Treasury Static Type Mainte­nance screen, refer to Table 5.2: Field- Parameters Combination. We recommend you use the parameter combination as shown in the below table.

Table 5.2: Field- Parameters Combination

 

5.3 Treasury Customer Additional Maintenance

Context:   

This topic provides the instruction to maintain ESMA Details and to capture the Legal Entity Identifier (LEI) code of the customer.

note: All fields marked with an asterisk    (*) are mandatory.

1.On the Home page, enter STDTRCIF in the text field, and then click the next arrow.

Step Result:   Treasury Customer Additional Maintenance screen is displayed.

Figure 5.2: Treasury Customer Additional Maintenance

2.On the Treasury Customer Additional Details Maintenance screen, click the ESMA Details tab and specify the details.

Step Result:   The ESMA Details page is displayed.

Figure 5.3: Treasury Customer Additional Details Maintenance - ESMA Details

For more information on the field description, refer to Table 5.3: Treasury Customer Additional Details Main­tenance - ESMA Details Tab - Field Description.

Table 5.3: Treasury Customer Additional Details Maintenance - ESMA Details Tab - Field Description

5.4 Securities Instrument Definition

Context:   This topic provides the instruction to maintain SFTR reporting details in the Securities Instrument Defi­nition screen.

The Securities Instrument Definition call form is enhanced with Financial Instrument’s Classification field to maintain SFTR reporting details.

note: All fields marked with an asterisk    (*) are mandatory.

1.On the Home page, enter SEDTRONL    in the text field, and then click next arrow.

Step Result:   Securities Instrument Definition screen is displayed.

Figure 5.4: Securities Instrument Definition

2.On the Securities Instrument Definition screen, specify the fields.

For more information on the field description, refer to “Process Security Deals Product Definition” in the Secu­rities User Guide.

5.5 Securities Repo Contract Online

Context:   

This topic provides the instruction to specify details for the Securities Repo Contract Online screen

note: All fields marked with an asterisk    (*) are mandatory.

1.On the Home page, enter SRDTRONL in the text field, and then click the next arrow.

Step Result:   Securities Repo Contract Online screen is displayed.

Figure 5.5: Securities Repo Contract Online

2.On the Securities Repo Contract Online screen, click the ESMA Details tab and specify the details.

Step Result:   The ESMA Details page is displayed.

Figure 6:Securities Repo Contract Online - ESMA Details

For more information on the field description, refer to Table 3.23: Securities Repo Contract Online - ESMA Details Tab - Field Description.

5.6 List of Glossary - SFTR

CODTRTYP

Static Type Maintenance - 5.2 Static Type Maintenance (p. 235).

STDTRCIF

Treasury Customer Additional Details Maintenance - 5.3 Treasury Customer Additional Maintenance (p. 237).

SEDTRONL

Security Instrument Definition - 5.4 Securities Instrument Definition (p. 239).

SRDTRONL

Securities Repo Contract Online - 5.5 Securities Repo Contract Online (p. 240).