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17 October 2014

EFAMA position paper on proposal for a Regulation on reporting and transparency of securities financing transactions


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EFAMA fully supports initiatives that aim at enhancing safety and transparency in capital markets activities. However, it also believes there should be no overlapping or inconsistent reporting obligations.


It should be acknowledged that not all securities financing transactions create systemic risk. Some do not imply any systemic risk. The European Fund and Asset Management Association (EFAMA) does not support an approach that aims to impose specific disclosure requirements exclusively applicable to investment funds. Such requirements as they exist in other EU pieces of legislation (MiFID II, EMIR, UCITS and AIFMD) should be taken into account to avoid overlaps.

The type of required information should be adapted to the user of the information. While supervisory authorities need detailed data, retail clients do not. The re‐use of securities is different from its re‐hypothecation. A clear definition will avoid that both terms are used interchangeably.

EFAMA strongly recommends that the Regulation focuses on the largest SFTs in terms of size of the transactions or on inter‐banking activities rather than bespoke transactions made with regulated funds or through asset management companies. A one size fits all obligation should be avoided, to elude a scenario where the smallest SFTs transactions would face disproportionate obligations, especially when comparing the implementation costs against the potential risks, if these obligations apply to every type and every size of SFT.

Full position paper



© EFAMA - European Fund and Asset Management Association


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