Featured Product

    FSB Updates Guidance on Implementation of Framework Related to SFTs

    November 26, 2019

    FSB updated the report on regulatory framework for haircuts on certain non-centrally cleared securities financing transactions (SFTs). The report, which was initially published in November 2015, includes numerical haircut floors to apply to non-bank-to-non-bank SFTs that were finalized after taking into account responses to a public consultation in October 2014. The key update includes changes to the technical guidance on implementation of the FSB framework for haircuts on non-centrally cleared SFTs (Annex 2). The technical guidance covers frequently asked questions on implementation of the framework for haircuts on non-centrally cleared SFTs. The framework aims to address financial stability risks associated with SFTs.

    The document on regulatory framework for haircuts on certain non-centrally cleared SFTs consists of recommendations on:

    • Qualitative standards for methodologies used by market participants that provide securities financing to calculate haircuts on the collateral received
    • A framework of numerical haircut floors that will apply to non-centrally cleared SFTs in which financing against collateral other than government securities is provided to non-banks. 

    This document also includes details of an enhanced monitoring of implementation of the framework through FSB process. Annex 3 to the report provides timeline of initial implementation of the FSB framework for numerical haircut floors, based on the jurisdictional approach.

     

    Related Links

    Keywords: International, Banking, Securities, Securities Financing Transactions, Haircuts, Shadow Banking, Market Based Finance, FAQ, Basel III, Non-Bank Financial Intermediation, FSB

    Featured Experts
    Related Articles
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.

    May 12, 2022 WebPage Regulatory News
    News

    EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA

    The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.

    May 11, 2022 WebPage Regulatory News
    News

    EC Mandates ESAs to Propose Amendments to SFDR Technical Standards

    The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.

    May 11, 2022 WebPage Regulatory News
    News

    EBA Examines Supervisory Practices, Issues Deposits Reporting Template

    The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),

    May 11, 2022 WebPage Regulatory News
    News

    SNB Updates NSFR Forms and FINMA Consults on Operational Risk Circular

    The Swiss National Bank (SNB) published Version 1.2 of the reporting forms (NSFR_G and NSFR_P) on the net stable funding ratio (NSFR) of banks, along with the associated documentation.

    May 10, 2022 WebPage Regulatory News
    News

    US Agency Publications Address Basel, Reporting, and CECL Developments

    The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances

    May 09, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8191