A trade repository is an entity that centrally collects and keeps records of derivatives or securities financing transactions reported by market participants, and gives regulators access to them. In the EU trade repositories are registered and supervised by the European Securities and Markets Authority (ESMA) under EMIR (derivatives) and SFTR (securities financing).
EMIR reportingEMIR reporting is the duty of EU counterparties to report the details of every derivative contract they conclude, modify or end to a registered trade repository by the working day after. Since the EMIR Refit of April 2024 reports use ISO 20022 XML with about 200 fields, including transaction, product and legal entity identifiers (UTI, UPI, LEI), valuation and collateral.
SFTR (Securities Financing Transactions Regulation)The Securities Financing Transactions Regulation (SFTR), Regulation (EU) 2015/2365, requires EU counterparties to report repos, securities lending, buy-sell-backs and margin lending to a trade repository by the working day after trade. It also sets disclosure rules for funds using these transactions and conditions for the reuse of collateral.
UTI (Unique transaction identifier)The unique transaction identifier (UTI) is a code, defined by ISO 23897, that identifies one reported derivative or securities financing transaction so both counterparties report it under the same reference. Rules decide which party generates the UTI and shares it in time for reporting.
FMI (Financial market infrastructure)A financial market infrastructure (FMI) is a multilateral system among participating institutions used to clear, settle or record payments, securities, derivatives or other financial transactions. The main types are payment systems, central securities depositories, securities settlement systems, central counterparties and trade repositories.
EMIR (European Market Infrastructure Regulation)The European Market Infrastructure Regulation (EMIR), Regulation (EU) No 648/2012, sets EU rules for over-the-counter derivatives, central counterparties and trade repositories. It imposes clearing of standard derivatives, risk mitigation (confirmation, reconciliation, margin) for uncleared ones and reporting of all derivatives; EMIR 3 (2024/2987) added the active account requirement.
SFTR (Securities Financing Transactions Regulation)The Securities Financing Transactions Regulation (SFTR), Regulation (EU) 2015/2365, requires EU counterparties to report repos, securities lending, buy-sell-backs and margin lending to a trade repository by the working day after trade. It also sets disclosure rules for funds using these transactions and conditions for the reuse of collateral.