Five industry associations publish SFTR information statement

13 April 2016

AFME FIA,ICMA, ISDA and ISLA jointly published a statement that can be used to help market participants comply with new requirements under the European Union’s Securities Financing Transaction Regulation.

The Securities Financing Transaction Regulation (SFTR) rules come into force from July 13, 2016, and will affect all existing and future title transfer and security collateral arrangements under a variety of financial agreements. Under the SFTR, all parties that accept collateral are obliged to inform their counterparties of the risks involved in entering a title transfer arrangement or granting a right to reuse collateral under a security arrangement.

The SFTR Information Statement is the result of a collaborative effort by AFME, FIA, ICMA, ISDA and ISLA, and has been drawn up to inform market participants of the general risks and consequences that may be involved in consenting to a right of use of collateral provided under a security collateral arrangement or of concluding a title transfer collateral arrangement. Market participants can tailor the statement to suit their own specific circumstances.

Full statement

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