FSB calls for SFT transparency
17 November 2014 Basel
Image: Shutterstock
The Financial Stability Board (FSB) has recommended that national and regional authorities collect appropriate data on securities financing markets to help them detect financial stability risks and develop policy responses.
The proposed standards and processes for doing so have been outlined in a new report and are based on the policy recommendations in a previous paper, Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos, that was published in August 2013.
The FSB will complete its work on developing standards and processes by the end of 2015, based on the public consultation findings and further discussion with market participants.
By then, the FSB also plans to develop an implementation timeline for the global data collection and aggregation.
Following this, the publication of relevant aggregates on the global securities financing markets to improve market transparency will be considered.
Mark Carney, chairman of the FSB, commented: "The proposed standards are an important step to ensure that authorities fully understand trends and risks in one of the core funding markets for wide range of market participants.”
“The global data collection and aggregation based on the FSB standards and processes will help transform securities financing markets into more transparent and resilient sources of financing that would better serve the needs of the economy”.
The FSB has asked that comments on the proposed standards and processes be submitted by 12 February 2015.
The proposed standards and processes for doing so have been outlined in a new report and are based on the policy recommendations in a previous paper, Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos, that was published in August 2013.
The FSB will complete its work on developing standards and processes by the end of 2015, based on the public consultation findings and further discussion with market participants.
By then, the FSB also plans to develop an implementation timeline for the global data collection and aggregation.
Following this, the publication of relevant aggregates on the global securities financing markets to improve market transparency will be considered.
Mark Carney, chairman of the FSB, commented: "The proposed standards are an important step to ensure that authorities fully understand trends and risks in one of the core funding markets for wide range of market participants.”
“The global data collection and aggregation based on the FSB standards and processes will help transform securities financing markets into more transparent and resilient sources of financing that would better serve the needs of the economy”.
The FSB has asked that comments on the proposed standards and processes be submitted by 12 February 2015.
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