Enhancing Repo Market Transparency: The EU Securities Financing Transactions Regulation.

This article focuses on the introduction and implications of the Securities Financing Transactions Regulation (SFTR) in the European Union, which mandates detailed reporting of securities financing transactions (SFTs) to enhance transparency and financial stability analysis of repo markets. Using transaction-level data collected in the ECB Securities and Financing Transaction Data Store (SFTDS), the article presents key findings on the euro area repo market’s structure, including market segments (jurisdiction, currency, central clearing, collateral types), counterparty roles (banks, non-banks, foreign entities), and collateral characteristics such as asset composition and haircut practices. The analysis highlights significant cross-border activity, the predominance of specific collateral, and varying risk profiles between centrally cleared and non-centrally cleared trades, especially involving non-bank financial institutions. Finally, the article outlines how SFTR data can support central banks and supervisory authorities in monitoring systemic risks, informing policy development, and assessing the impact of regulatory reforms on repo market resilience and monetary policy transmission.