The Regulation (EU) 2015/2365 aims to enhance transparency in securities financing transactions (SFTs) and their reuse. It seeks to mitigate risks highlighted during the 2007-2008 financial crisis, particularly in shadow banking. To this end, the Regulation mandates that all SFTs be reported to registered trade repositories and introduces minimum disclosure requirements for collective investment undertakings regarding their use of these transactions. The intention is to provide regulators a clearer view of interconnectedness and leverage within financial markets.

Moreover, the Regulation imposes strict reporting standards on counterparties, including the composition and availability of collateral, and addresses the potential risks associated with collateral reuse. By adhering to these framework conditions, Member States are expected to foster a more robust financial environment, reducing the likelihood of systemic risks and enhancing investor protection through improved disclosure in periodic reports and pre-contractual documents.