SFTR

Instructions

Securities Financing Transactions Regulation (“SFTR”) is a European regulation aimed at mitigating the risk of shadow banking. SFT's have been identified as being one of the central causes of the financial crisis and during and post crisis, regulators have struggled with anticipating the risks associated with securities financing. This led to the introduction of a reporting requirement for these SFTs.

Transactions that are reportable under SFTR include repurchase agreements (repos), stock loans, margin loans, sell/buy-back transactions and collateral management transactions. Reporting obligations normally apply to all clients established in the EU with the exception of natural persons. They apply to:

  • Financial counterparties ("FC"): include investment firms, credit institutions, insurance and reinsurance undertakings, UCITS and UCITS management companies, Alternative Investment Fund managed by an AIFM authorised under the Alternative Investment Fund Managers Directive ("AIFMD"), institutions for occupational retirement provision, central counterparties and central securities depositories.

  • Non-Financial Counterparty ("NFC"): Undertakings established in the Union or in a third country that do not fall under the definition of financial counterparty.

  • Small Non- Financial Counterparty ("NFC-"): A small non-financial counterparty is one which does not exceed the limits of at least two of three criteria: a balance sheet total of EUR 20m, net turnover of EUR 40m, and average number of 250 employees during the financial year. Under SFTR, small NFC's reporting obligations are automatically delegated to the financial counterparty with which they execute an SFT.

Under SFTR, Interactive Brokers is required to collect certain information ahead of any security financing transaction. Please complete the electronic form to ensure you have provided accurate information by taking the steps outlined below. If you are also subject to the SFTR reporting obligations, you might also be able to request delegated reporting to Interactive Brokers.

  1. Click the User menu (head and shoulders icon in the top right corner) > Settings > Account Reporting.

  2. Under the Account Reporting section select SFTRfollowed byContinue

    The SFTR information panel in broker portal.

  3. Select your SFTR Category and press Continue

    The SFTR information category options in broker portal.

  4. Fill out the required information and press Continueto save.

 

Additional Resources

Learn About the Broker Portal Interface at IBKR Campus

Visit the IBKR Broker Portal Website

Visit our SFTR Reporting User Guide Page

Log in to SFTR