Financial Associations Distribute SFTR Information Statement

Effective July 13, 2016, the European Union Securities Financing Transactions Regulation ("SFTR") will require parties that accept collateral in connection with financial transactions to inform their counterparties of risks and consequences involved in: (i) entering a title transfer collateral arrangement; or (ii) granting a right to reuse collateral under a security arrangement.

An SFTR Information Statement, the result of a collaborative effort by multiple financial associations, was drafted and distributed to inform market participants of the general risks and consequences that may be involved when consenting to a right of use of collateral provided under a security collateral arrangement or when concluding a title transfer collateral arrangement. Market participants will be allowed to tailor the statement to suit their own specific circumstances in order to satisfy Article 15 requirements of SFTR. Newly published Appendix 3 to the Information Statement generally