On 12 January 2016 Regulation (EU) 2015/2365 of the European Parliament and of the Council of 25 November 2015 on transparency of securities financing transactions and of reuse (the "Regulation") entered into force. Many of the obligations set forth in the Regulation will however not immediately apply, but will be phased in and become applicable over time. The Regulation, which is intended to limit the risks arising from shadow banking, lays down rules relating to the transparency of securities financing transactions ("SFTs") and the reuse of collateral received under a financial collateral arrangement ("FCA"). According to EU lawmakers, the Regulation is expected to enhance the transparency of the securities financing markets.
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