More transparency during certain financial transactions that take place outside the regulated banking sector (known as 'shadow banking' activities): this is the goal of a political compromise on the draft regulation imposing reporting and transparency obligations on securities financing transactions (known as SFTR), concluded by the negotiators of the European Parliament and the Latvian Presidency on 17 June.
SFTR are securities lending operations and pension operations, whereby securities are sold with a commitment to buy them back later in order…