FSB published a set of frequently asked questions (FAQs) to promote a common approach and to further help in the national implementation of the standards and processes for collecting and aggregating global data on securities financing transactions (SFT Data Standards). The FAQs are based on practical issues raised by the FSB member jurisdictions in their implementation of the SFT Data Standards as well as by BIS as the global aggregator. As market practices evolve, the Data Experts Group of FSB will continue to update the FAQs as needed going forward.
Securities financing transactions, such as securities lending and repurchase agreements, play a crucial role in supporting price discovery and secondary market liquidity for a wide variety of securities. However, such transactions can also be used to take on leverage as well as maturity and liquidity mismatched exposures and can, therefore, pose risks to financial stability. Building on the FSB policy recommendations (published in 2013) to address financial stability risks from the securities financing transactions, FSB developed the SFT Data Standards in November 2015. Based on the SFT Data Standards, FSB, through its Data Experts Group, has been working on the global data collection and aggregation, by developing detailed operational arrangements, such as the reporting guidelines, and facilitating national implementation. BIS, leveraging on its expertise in managing international banking and financial statistics, has agreed to provide operational support for the collection and potential dissemination of aggregated securities financing data.
Keywords: International, Banking, Securities, Securities Financing Transactions, SFT Data Standards, FAQ, Basel, BIS, FSB
Previous ArticleECB Updates List of Supervised Entities in EU in April 2021
The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).
In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.
The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.
The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.
The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.
The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.