EMIR & SFTR with Deloitte

Securities Financing Transactions (SFTs) can be used to describe any transaction where securities are used to borrow cash or vice versa. Repurchase agreements (repos), securities lending activities and sell/buy-back transactions are all covered by this description. In all of these instances, ownership of the securities temporarily changes in return for cash temporarily changing ownership.

Like the EMIR regime, SFTR has also been introduced to monitor risk and enhance transparency in the finance industry. With the financial industry nearing its MiFID II implementation run-in, SFTR is the next highly anticipated regulation focused on the financing and reuse of securities that is starting to gain momentum.