On May 21, the International Capital Market Association (ICMA) published a response received from the European Securities and Markets Authority (ESMA) in relation to proposals for reporting of central bank repurchase transactions (Repos) under the Market in Financial Instruments Regulation (MiFIR) (the Response).
The key points of ESMA’s Response include:
- collateral should be reported, not the Repo itself;
- Repos with multiple collateral securities should be reported as a complex trade;
- where the collateral allocation is only available after the T+1 reporting deadline, EU financial regulators can assess whether the delay is justified; and
- pledge-based Repos must be reported.
The Response is available here.