FSB finalise sec financing reporting proposals
19 November 2015 Basel
Image: Shutterstock
The Financial Stability Board (FSB) has finalised its recommendations on increasing data reporting requirements for securities financing transactions (SFTs).
The Standards and Processes for Global Securities Financing Data Collection and Aggregation report states that the extra reporting requirements will serve a wide range of market participants and improve market transparency.
The newly finalised standards define the data elements for repo, securities lending and margin lending that national and regional authorities will be asked to report as aggregates to the FSB.
The FSB argue a greater detail of data reporting on SFTs is needed to detect market instability.
The final standards are based on the FSB’s previous August 2013 report.
The FSB’s Data Experts Group developed the standards and processes for global data collection and aggregation on SFTs for financial stability monitoring and policy responses.
These standards and processes would allow the FSB to collect periodically (at least monthly) from national and regional authorities aggregated data on securities lending, repos, and margin lending.
They would also include recommendations for data collection procedures for national and regional authorities that should help minimise potential problems in global aggregates, such as double-counting.
The standards also tie into the implementation of the FSB’s regulatory proposals on haircuts on non-centrally cleared SFTs.
The report sets out six recommendations to ensure the consistency and usefulness of the data collected by authorities.
The potential uses of the aggregated data are discussed and the next steps for the completion of the initiative, including a timeline for the implementation of the standards and processes, are outlined.
The FSB has started working on the detailed operational arrangements with a view to initiating the official global data collection and aggregation at the end of 2018.
The Standards and Processes for Global Securities Financing Data Collection and Aggregation report states that the extra reporting requirements will serve a wide range of market participants and improve market transparency.
The newly finalised standards define the data elements for repo, securities lending and margin lending that national and regional authorities will be asked to report as aggregates to the FSB.
The FSB argue a greater detail of data reporting on SFTs is needed to detect market instability.
The final standards are based on the FSB’s previous August 2013 report.
The FSB’s Data Experts Group developed the standards and processes for global data collection and aggregation on SFTs for financial stability monitoring and policy responses.
These standards and processes would allow the FSB to collect periodically (at least monthly) from national and regional authorities aggregated data on securities lending, repos, and margin lending.
They would also include recommendations for data collection procedures for national and regional authorities that should help minimise potential problems in global aggregates, such as double-counting.
The standards also tie into the implementation of the FSB’s regulatory proposals on haircuts on non-centrally cleared SFTs.
The report sets out six recommendations to ensure the consistency and usefulness of the data collected by authorities.
The potential uses of the aggregated data are discussed and the next steps for the completion of the initiative, including a timeline for the implementation of the standards and processes, are outlined.
The FSB has started working on the detailed operational arrangements with a view to initiating the official global data collection and aggregation at the end of 2018.
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