Relevant to Article 15 of the EU Securities Financing Transactions Regulation (“SFTR”)

Article 15 of the SFTR has been interpreted to require all counterparties, including buy side counterparties outside Europe, to inform their European counterparties of the risks involved in collateral arrangements that permit the reuse of posted securities. As a result, firms that receive securities collateral under such arrangements should send the SFTR Information Statement published by ISDA and other trade associations to all relevant EU counterparties.

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