240. SFTR provides that the reporting obligation and the requirements relating to reuse of collateral do not apply to transactions when one counterparty is a member of the ESCB, or a member states’ body which performs a similar function, or another Union public body charged with/intervening in the management of the public debt, or the Bank for International Settlements.
241. In addition, Article 2(3) of SFTR confirms that the reporting obligation does not apply when one counterparty is a member of the ESCB.
242. The obligation to report in line with Article 2(2) and Article 2(3) is upon the counterparties. TRs should ensure to have systems in place to reject reports submitted by the entities covered by Article 2(2) and to reject any SFT where a member of the ESCB, based on GLEIF, is being identified as either the reporting counterparty or the other counterparty.