ESMA has published a report on the SFT Regulation in relation to securities financing transactions, leverage and pro-cyclicality in the EU. ESMA is required to assess whether the use of SFTs leads to the build-up of leverage that is not yet addressed by existing regulation, the options for tackling such a build-up, and whether further measures are necessary to reduce the procyclicality of that leverage. ESMA explains that a thorough analysis of the EU SFT market is hampered by the current lack of granular SFT data at EU level; however, it provides some recommendations in its report, albeit that it recognises that it is too early to reach definitive conclusions.