Securities Financing Transactions (Regulation)

The Commission wants to introduce a EU-wide reporting obligation for securities financing transactions, tighten rules on the rehypothecation of securities and extend the information requirements for investment funds.


The reporting obligation for securities financing transactions increases the transparency of credit interconnectedness. This is necessary in order to recognise potential risks at both the micro-prudential and macro-prudential level. The added value of tightening the rules on rehypothecation is small. The additional information requirements for UCITS and AIFMs only provide a theoretical contribution to investor protection. The Commission's power to change the scope of the Regulation by way of delegated acts is in breach of EU law.