3.1.1 Market transactions that do not fall under the definition of an SFT
Q1. Do you agree with the above assessment? Are there any other transactions for which clarification is needed? Please detail the reasons for your response.
1. Article 3(11) SFTR provides the definition of SFTs. Furthermore, Article 3(10) defines margin lending transactions as "a transaction in which a counterparty extends credit in connection with the purchase, sale, carrying or trading of securities, but not including other loans that are secured by collateral in the form of securities". This unequivocally indicates the intention of the co-legislators to limit the applicability of SFTR to only certain types of market transactions that might share characteristics with margin loans.
2. Recital (7) of SFTR states that "This Regulation responds to the need to enhance the transparency of securities financing markets and thus of the financial system. In order to ensure equivalent conditions of competition and interna
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