ESMA_QA_926

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/926

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Regulatory Context

Regulation : SFTR

Level 1 Regulation: Securities Financing Transactions Regulation (SFTR) Regulation (EU) 2015/2365- MDP

Level 2 Regulation: No information available

Level 3 Regulation: No information available

Topic: Margin lending

Subject Matter: Reporting of zero collateral for margin lending

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Question

Submission Date: 05 November 2020

How should zero collateral be reported for margin lending?

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ESMA Answer

Answer Date: 05-11-2020

[ESMA74-362-893 Q&A 5] In accordance with Article 5(2) of CIR (EU) 2019/363, counterparties should report the relevant collateral components of a margin loan as long as there is an outstanding exposure. Currently the technical standards do not allow for reporting of cash collateral for margin loans, therefore the counterparties cannot report for margin lending zero collateral in line with section 5.4.4 of the ESMA SFTR Reporting Guidelines. Counterparties should use the ISIN EU000A1G0EB6 (European Financial Stability Facility) as an agreed default value in field 2.78 (Identification of a security used as collateral) to report zero collateral for margin loans.

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This document was automatically extracted from the ESMA EMIR Q&A database.