Securities Financing Transactions (Regulation)

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.