The Securities Financing Transactions Regulation

The SFTR will improve transparency in securities and commodities lending, repos, margin loans and some collateral arrangements.

The Regulation on Transparency of Securities Financing Transactions and of Reuse (2015/2365) (the SFTR) is a key part of the EU's initiative to reform shadow banking following the 2007-2008 financial crisis. Its aim is to improve transparency in securities and commodities lending, repurchase transactions, margin loans and certain collateral arrangements.

When was the SFTR adopted?

The SFTR was adopted in November 2015 and published in the Official Journal of the European Union on 23 December 2015. It applies from 12 January 2016. However, a combination of staggered effective dates and the need to wait for Level 2 measures means that most of its requirements will become effective after 13 July 2016.