On March 19, 2020, the European Securities and Markets Authority (ESMA) published a public statement regarding the reporting requirements and registration of EU trade repositories (TR) under the Securities Finance Transactions Regulation (SFTR) in light of the recent adverse developments of the COVID-19 pandemic (the Public Statement).

In the Public Statement, ESMA notes that from April 13, 2020 until July 13, 2020, EU financial regulators should not prioritize their supervisory action towards entities which are subject to the Securities Finance Transactions (SFT) reporting obligations. These entities are counterparties, entities responsible for reporting and investment firms.

ESMA notes that it does not deem it necessary to register any TR ahead of April 13, 2020. Instead they expect TRs to be registered sufficiently ahead of the next phase of the reporting regime, which is scheduled to begin on July 13, 2020 for credit institutions, investment firms, central counterparties, central securities depositories and relevant third-country entities.

ESMA will continue to monitor the implementation and impact of the SFTR measures in light of COVID-19 to ensure alignment of SFT reporting requirements and supervisory practices in the EU.

The Public Statement is available here.