Summary of ESMA's opinion on proposed amendments to SFTR technical standards
Following the European Commission intention to amend the ESMA’s draft RTS and ITS, the European financial markets regulator has just released an opinion which declines the invite received to provide amendments to SFTR Level II text.
This appears to be a Gordian knot which might eventually freeze the reporting go-live and, therefore, the whole industry. Since the beginning of the year we have seen how the market is collaborating by building a robust infrastructure that supports smart data consumption. However, even though latest news will make investment firms think the worst, SFTR remains a good opportunity to create a better reporting framework as regulators are relying on market participants to deliver robust data via trade repositories. Last but not least, lessons learned from EMIR tells us that waiting is not a good strategy.