ICMA publishes analysis of the first year of data on repo from SFTR reporting

The International Capital Market Association (ICMA) has published analysis of the key market features and trends in the European repo market.

Reporting on the EU’s Securities Financing Transactions Regulation (SFTR) went live on 13 July 2020, making this publication an analysis of the first full year of SFTR reported data.

The analysis relies on the summary statistics, which authorised trade repositories (TRs) are required to provide under SFTR on a weekly basis.

The report is broken into two parts which cover the first six months of the EU-28 repo market and the EU-27 and the UK market segments. This reflects the split of SFTR reporting into separate EU and UK regimes following the end of the Brexit transition period.

Additionally, the report, which was authored by Richard Comotto, reflects on some of the remaining issues with the quality of the SFTR public data, which are highlighted in the final chapter.

ICMA will continue to work with members of the ERCC SFTR Task Force, including reporting firms, TRs and the relevant service providers, to identify and address outstanding issues with SFTR reporting, helping to improve the quality of the reported data.

The regulator will also aggregate and publish SFTR public data on a weekly basis, alongside detailed analysis on an ad-hoc basis, as part of its commitment to supporting an efficient and transparent repo market.