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 Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.
The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.
The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).
The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.