FSB updates Regulatory framework for haircuts on non-centrally cleared securities financing transactions

This document sets out a revised framework for haircuts on non-centrally cleared securities financing transactions. As in the October 2014 Framework Document, it consists of recommendations on: (i) qualitative standards for methodologies used by market participants that provide securities financing to calculate haircuts on the collateral received (Section 2); and (ii) a framework of numerical haircut floors that will apply to non-centrally cleared securities financing transactions in which financing against collateral other than government securities is provided to non-banks (Section 3). This document also includes: (i) the implementation approach for applying the numerical haircut floors to non-bank-to-non-bank transactions (Section 3.5); (ii) details of an enhanced monitoring of implementation of the framework through the FSB process (Section 3.6); and (iii) the technical guidance on the implementation of the framework (Annex 2).

The full document is available at https://www.fsb.org/wp-content/uploads/P261119-1.pdf

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