PHILADELPHIA, PA (January 15,
2020) –
The Securities Lending Council of the Risk Management
Association is pleased to announce the release of a new standard legal
agreement to address mandatory reporting obligations under Article 4 of the
Securities Finance Transaction Regulation (SFTR). The SFTR Reporting
Delegation Agreement (RDA) provides market participants with a comprehensive
and easy-to-use template to assist in memorializing reporting services provided
by agent lenders to beneficial owners. The RDA is intended to streamline
the implementation of SFTR mandatory reporting and promote consistency across
the securities lending market.
The Securities Finance Transaction Regulation, which takes
effect for credit institutions on April 11, 2020, is meant to improve the transparency of securities
financing transactions (SFTs) and identify their associated risks and
magnitude.
The European Commission, which adopted the SFTR in 2015, defines
SFTs as secured funding or lending transactions that imply a temporary exchange
of assets with one leg of the transaction serving as a guarantee (collateral). It
notes that SFTs allow banks and non-bank market participants to access secured
funding/lending on a short term, thereby creating low-risk investment and
financing opportunities, and are an integral element of the current financial
ecosystem.
The RDA is available to all RMA members and can be found
here: https://www.rmahq.org/sftr-delegated-reporting/
For questions relating to the RDA, please contact RMA
Director of Securities Lending Fran Garritt at fgarritt@rmahq.org.
About RMA
Founded in 1914, The Risk Management Association is a not-for-profit,
member-driven professional association whose sole purpose is to advance the use
of sound risk management principles in the financial services industry. RMA promotes
an enterprise approach to risk management that focuses on credit risk, market
risk, and operational risk. Headquartered in Philadelphia, Pennsylvania, RMA
has 1,900 institutional members that include banks of all sizes as well as
nonbank financial institutions. They are represented in the Association by
18,500 individuals located throughout North America, Europe, Australia, and
Asia/Pacific.
Media Contacts
Stephen Krasowski, skrasowski@rmahq.org, 215-446-4095
Frank Devlin, fdevlin@rmahq.org, 215-446-4137