In a recent speech, vice chair for Supervision Michael Barr, announced his intentions to recommend that the Board re-propose the Basel endgame and G-SIB surcharge rules.
On SFTs, he said: “I intend to recommend that the Board not adopt the capital treatment associated with minimum haircut floors for securities financing transactions. The proposal included heightened capital requirements for repo-style transactions and eligible margin loans that did not meet minimum margin requirements. While consistent with the Basel standard, several other major jurisdictions have not adopted this approach. Not adopting the minimum haircut floors will allow time to seek greater international consensus on this important topic before deciding on whether and how to implement such an approach in the United States.”