Repo rules caught in Covid’s concertina effect

Pandemic jeopardises phased rollout of Europe’s SFTR regime, raising fears of chaotic ‘big bang’ start

Even the best-laid plans can be derailed by unexpected events.

In the case of Europe’s new reporting regime for securities lending and repo activity, the coronavirus outbreak has thwarted what the regulator intended as a gradual, staged roll-out. A three-month delay to the first phase of the rules is prompting concerns that the industry might have to adopt the framework in one go.

Some now fear that a chaotic scramble to meet the rules will sow confusion, when the original aim of the