The Securities Financing Transaction Regulation (SFTR) came into effect on 12 January 2016 to help enhance the transparency around the use of Securities Financing Transactions (SFTs) and Total Return Swaps (TRSs) in the shadow banking industry.

The purpose of this paper is to provide guidance on some common questions on the SFTR as it relates to and impacts on the annual and semi-annual reports. In this paper we look at:

  • who does the SFTR apply to?;
  • when are these disclosures required?;
  • where in the annual report should the required disclosures be included?;
  • what is an SFT?;
  • what needs to be disclosed?; and
  • how we see it.