The details of an SFT in a report to be submitted pursuant to Article 4(1) of Regulation (EU) 2015/2365 shall be provided in accordance with the standards and formats specified in Tables 1 to 5 of Annex I. That report shall be provided in a common electronic and machine-readable form and in a common XML template in accordance with the ISO 20022 methodology.
1.The report referred to in Article 1 shall use an ISO 17442 legal entity identifier (‘LEI’) code to identify the following:
(a)a beneficiary which is a legal entity;
(b)a broking entity;
(c)a central counterparty (‘CCP’) authorised in accordance with Regulation (EU) No 648/2012;
(d)a clearing member;
(e)an agent lender;
(f)a central securities depository (‘CSD’) participant;
(g)a counterparty which is a legal entity;
(h)a tri-party agent;
(i)a report submitting entity;
(j)an issuer of a security which was lent, borrowed or provided as collateral in a SFT.
2.A counterparty to an SFT shall ensure that the reference data related to its ISO 17442 LEI code is renewed in accordance with the terms of any of the accredited Local Operating Units of the Global LEI System.
3.Where an SFT is concluded through a branch of a counterparty, the report referred to in Article 1 shall use the code specified in Field 7 and in Field 8 of Table 1 of Annex I to identify that branch of a counterparty.
1.A report shall be identified through a unique trade identifier (‘UTI’) agreed by the counterparties in accordance with the format specified in Field 1 of Table 2 of Annex I.
2.Where counterparties fail to agree on the entity responsible for generating UTI to be assigned to the report, the counterparties shall determine the entity responsible for generating a UTI in accordance with the following:
(a)for centrally-executed and cleared SFTs, the UTI shall be generated at the point of clearing by the CCP for the clearing member. Another UTI shall be generated by the clearing member for its counterparty;
(b)for centrally-executed but not centrally-cleared SFTs, the UTI shall be generated by the trading venue of execution for its member;
(c)for centrally-confirmed and cleared SFTs, the UTI shall be generated by the CCP for the clearing member at the point of clearing. Another UTI shall be generated by the clearing member for its counterparty;
(d)for SFTs that were centrally-confirmed by electronic means but were not centrally-cleared, the UTI shall be generated by the trade confirmation platform at the point of confirmation;
(e)for all SFTs other than those referred to in points (a) to (d), the following shall apply:
where financial counterparties conclude an SFT with non-financial counterparties, the financial counterparties shall generate the UTI;
for all securities lending or borrowing transactions other than those referred to in point (i), the collateral provider as referred to in Article 4 shall generate the UTI;
for all SFTs other than those referred to in points (i) and (ii), the collateral taker as referred to in Article 4 shall generate the UTI.
3.The counterparty generating the UTI shall communicate that UTI to the other counterparty in a timely manner so that the latter is able to meet its reporting obligation.
1.The counterparty side to the SFT referred to in Field 9 of Table 1 of Annex I shall be identified in accordance with paragraphs 2 to 4.
2.In the case of repurchase transactions, buy-sell back transactions and sell-buy back transactions, the counterparty that buys securities, commodities, or guaranteed rights relating to title to securities or commodities in the opening or spot leg of the trade and agrees to sell them at a specified price on a future date in the closing or forward leg of the trade, shall be identified as the collateral taker in Field 9 of Table 1 of Annex I. The counterparty that sells those securities, commodities, or guaranteed rights shall be identified as the collateral provider in Field 9 of Table 1 of Annex I.
3.In the case of securities or commodities borrowing transactions and securities or commodities lending transactions, the counterparty that lends the securities or commodities on condition that the borrower will return equivalent securities or commodities on a future date or at the request of the transferor, shall be identified as the collateral taker in Field 9 of Table 1 of Annex I. The counterparty that borrows those securities or commodities shall be identified as the collateral provider in Field 9 of Table 1 of Annex I.
4.In the case of margin lending transactions, the borrower, that is the counterparty to which credit is extended in exchange for collateral, shall be identified as the collateral provider in Field 9 of Table 1 of Annex I. The lender, that is the counterparty that provides the credit in exchange for collateral, shall be identified as the collateral taker in Field 9 of Table 1 of Annex I.
1.All reports of the details of an SFT specified under Article 1(2) of Commission Delegated Regulation (EU) 2019/356(1) be provided in the chronological order in which the reported events occurred.
2.A counterparty to a margin lending transaction shall report the details of the outstanding margin loan as they stand at the end of each day, where there is a net cash debit in base currency or where a counterparty's short market value is positive.
3.A counterparty to an outstanding SFT shall report any modification of the details relating to the collateral data in Fields 75 to 94 of Table 2 of Annex I with action type ‘Collateral update’. The counterparty shall report those modified details as they stand at the end of each day until it reports the termination of the SFT, or it reports the SFT with action type ‘Error’, or until the SFT reaches its maturity date, whichever is the earlier.
4.A counterparty to an outstanding SFT shall report any modification of the end-of-day market value of the securities lent or borrowed in Field 57 of Table 2 of Annex I with action type ‘Valuation update’. The counterparty shall report that modified market value as it stands at the end of each day until it reports the termination of the SFT, or it reports the SFT with action type ‘Error’, or until the SFT reaches its maturity date.
5.A counterparty shall report any modification of the total amount of margin posted or received for all cleared SFTs as it stands at the end of the day in Fields 8 to 19 of Table 3 of Annex I with action type ‘Margin update’ after it has first reported the total amount of margin posted or received with action type ‘New’.
6.A counterparty shall report any modification of the value of reused collateral, reinvested cash and the funding sources with action type ‘Reuse update’ as it stands at the end of the day in Fields 8 to 14 of Table 4 of Annex I after it has reported the relevant values with action type ‘New’.
Implementing Regulation (EU) No 1247/2012 is amended as follows:
Article 4 is amended as follows:
paragraph 7 is replaced by the following:
‘The derivative shall be classified in Field 4 of Table 2 of the Annex using an ISO 10692 Classification of Financial Instrument (CFI) code.’;
paragraphs 8 and 9 are deleted.
In Article 4a, paragraph 1 is replaced by the following:
‘1.A report shall be identified through a unique trade identifier agreed by the counterparties.’;
The Annex is replaced by the text set out in Annex II to this Regulation.
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 13 December 2018.
For the Commission
The President
Jean-Claude Juncker