Who reports? And in what scenario?

There is only one Securities Financing Transaction that does not result in a reporting obligation under the Securities Financing Transactions Regulation: if a non-EU entity (or its non-EU branch) trades with another non-EU entity (or its non-EU branch), then no reporting obligations arise.


Of a possible 16 combinations (of who trades with whom), 15 are covered. So, who is to report when the reporting obligation arises?


Surprisingly, it all fits in one simple chart. It has 16 squares, each representing a scenario. There is only one orange square, the one which does not create a reporting obligation. All the other 15 squares create an obligation.


Pick a square you fancy. Look at the direction in which the arrow in that square points. That is the entity that has a reporting obligation. A number of squares have two arrows – both of those pointed to must report.


It is quite simple, really! Download this and put it up at your work desk if you need to!


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