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

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 23, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    News

    FCA to Begin to Move Firms to New Data Collection Platform RegData

    FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.

    September 23, 2020 WebPage Regulatory News
    News

    ISDA Expects IBOR Fallbacks to be Effective by End of January 2021

    ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.

    September 23, 2020 WebPage Regulatory News
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5836