Australian regulators propose new securities lending, repo and margin data collection

Economic and financial statistics, January 2017
Discussion Paper

Proposed changes
Repurchase agreements and securities lending

Consistent with feedback received in informal consultation, the agencies are proposing two alternative versions of the repurchase agreements and securities lending form: Option A, which will collect transaction-level data on repos and securities lending activity for all positions outstanding at the end of the month; and Option B which will collect aggregated data broken down along key dimensions. During informal consultation, most reporting institutions indicated a strong preference for Option A; however, some reporting institutions are likely to find reporting on Option B more straightforward.

For each repo, reverse repo, securities lending and securities borrowing position outstanding at the end of the month, reporting entities will be required to provide detail on the characteristics of the loan and of the underlying collateral. For securities lending activity, some further aggregate information will be collected on the reinvestment of cash collateral as feedback indicates this is not reportable at a transaction level.

Only reporting institutions with an outstanding stock of repos, reverse repos, securities lending and/or securities borrowing greater than or equal to a specified threshold will be required to report on this form. The proposed threshold is $100 million.

When the new repo and securities lending form (ARF 721.0 ABS/RBA Repurchase Agreements and Securities Lending) is introduced, the existing ARF/RRF 320.5 form and quarterly RBA repo survey will be discontinued.

Margin lending
The agencies are proposing a quarterly margin lending form (ARF 723.0 ABS/RBA Margin Lending Facilities) that is very similar to the existing survey conducted by the RBA. A few extra items have been added to address aspects of the new FSB standards, and some concepts have been aligned with other proposed forms within the EFS collection.
Only reporting institutions with margin lending greater than or equal to a specified threshold will be required to report on this form. The proposed threshold is $100 million.
The RBA’s quarterly margin lending survey will be discontinued following the introduction of the new form.

The full report is available here.

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