The Securities Financing Transactions Regulation (SFTR) forms a central element of the European Commission’s strategy to reduce perceived ‘shadow banking’ risks in the securities financing markets. It forms part of the EU’s response to the Financial Stability Board’s August 2013 policy proposals on Securities Lending and Repos. This one day course describes the key requirements of the SFTR and explores the issues faced by practitioners as the market prepares for implementation.
There has never been before a requirement for reporting of securities financing transactions. Whereas firms are conversant with the demands of MiFIR and EMIR already in place, reporting relating to securities financing is a new arena, presenting significant challenges. The course is designed for practitioners to help understand the unique demands of this new reporting regulation.
Securities Financing Transactions (SFTs) are any transactions where securities are used to borrow cash or vice versa and it includes: repos, securities lending and sell/buy-back transactions. Companies affected by this regulation include banks, investment firms, CCPs, CSDs, insurance firms, pension funds, UCITS and AIFs.
What will you learn
By the end of this practical one day course you will:
- Have a solid understanding of SFTR, its scope and requirements
- Learn about operational set up required
- Discover the impact on your business
- Learn about reporting requirements
- Explore the data management processes
Main topics covered during this training
- The objectives and scope of SFTR
- Who will be affected and how
- Operational timings
- Details of reporting required
- Main challenges and application of technology
The scope of the SFTR
- What are its objectives?
- Where is it similar to MiFIR and EMIR?
- Who does it affect?
- Exemptions and extraterritoriality
- Product areas impacted
- The timetable
- Examples of repo and securities lending and borrowing transactions
- The size of the market
- Areas of impact
- Effect upon issuers, lenders, borrowers and intermediaries
- The impact on operators of UCITS and AIFs and disclosure arrangements
- Reuse of collateral, the bearing upon collateral management
SFTR reporting requirements
- How this will operate for SFTR
- Operational timings
- What operations processes are affected and how?
- Data enrichment requirements and data collection
- Meeting the data challenges - magnitude of data needed and sourcing
- Detailed reporting requirements
- Reporting to Trade Repositories and delegation
- Impacts and challenges for reporting
- Application of technology
The Course Director has over 40 years’ international experience of financial markets. He specialises in the securities and derivatives industry, with particular expertise in the establishment of new markets, trading, operations, regulation, risk management, corporate governance, clearing and settlement. He has substantial executive experience with clearing houses, exchanges, international markets and in the management of IT. He works extensively with international clients including banks, central banks, asset managers, brokers, custodians, service providers and exchanges.
He has deep derivatives and securities experience and is recognised as a leading authority in the field of operations, investment and risk management. He has taught students leading to the CISI Diploma in Global Operations Management for fifteen years.
The Course Director is an expert on derivatives, commodities, foreign exchange, fixed income and equities and has contributed to and led many projects to introduce new exchanges. He has also presented product training courses around the world covering the utilisation of these various asset classes in investment portfolios and the market disciplines associated including risk management approaches’. Alan regularly provides education on all aspects of investment operations including trading, settlement, custody and asset servicing for examination and general educational purposes.
Following 20 successful years with ICCH (now LCH.Clearnet) until 1992 during which he was Chief Executive in Hong Kong and Executive Director in London, he joined MEFF, the Spanish Financial Futures Exchange, as its International Director. Today he is an independent advisor offering a broad range of professional services, which include consulting, management, training and expert witness work.
Alan is a Chartered Fellow of the Chartered Institute for Securities & Investment (Chartered FCSI). He is a CISI accredited trainer and examiner.
He is Chairman of the CISI Risk Forum and Deputy Chairman of the CISI Operations Forum.
This course and its content is relevant and suitable for all those involved in or affected by transaction reporting responsibilities. This will include:
- General Managers
- Compliance Officers
- Risk Managers
- Front Office Staff
- IT and
- Operations professionals
from banks, investment firms, CCPs, CSDs, insurance, reinsurance undertakings, pension funds, UCITs, AIFs.
Venue to be announced shortly.