SFTR: Trade Bodies Push for 6 Month Delay
March 17, 2020
In their letter to the regulator, ISLA and ICMA suggest that “the impact on personnel involved in SFTR implementation programmes, compounded by pressures on firms caused by the associated surges in market volatility and volumes, has reached a point where firms believe that their capacity to ensure compliance with the requirements as of 11 April has been critically compromised”.
“In addition, firms realise that this situation will deteriorate further for some months as countries around the world implement unprecedented measures to mitigate the COVID-19 pandemic,” they add.
As a result, the trade bodies argue that “in light of such exceptional circumstances” ESMA should initiate, “as a matter of urgency, the procedure for obtaining a formal delay of the SFTR reporting go-live date to an appropriate date that falls well outside the expected critical phase of the pandemic”.
The associations’ suggested date of 11 October would align with the current deadline for the third phase of SFTR reporting, which includes buy-side members.
If a delay is not possible, the associations request that ESMA and national competent authorities “provide forbearance and sufficient reassurance” to ensure that those in-scope for the next month’s deadline will not be unduly penalised for being less than totally compliant in the first few months after go-live.