The Securities Financing Transactions Regulation
(SFTR) was introduced by the European Union
(EU) to regulate the securities finance market,
which is regarded as a major contributor to the
2008 financial crisis. SFTR trade reporting
is an important requirement of the regulation,
and it aims to enhance the transparency of the
securities finance market while reducing the risks
involved in securities financing transactions.
SFTR trade reporting mandates that both
financial and non-financial counterparties report
specified data about their securities financing
transactions. The reported data includes
information about the securities involved,
collateral, financing rates, maturity dates, and
counterparties.