Home   News   Features   Interviews   Magazine Archive   Symposium   Industry Awards  
Subscribe
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
≔ Menu
Securites Lending Times logo
Leading the Way

Global Securities Finance News and Commentary
News by section
Subscribe
⨂ Close
  1. Home
  2. Repo news
  3. Industry calls for further guidance on all sustainability-related repo
Repo news

Industry calls for further guidance on all sustainability-related repo


02 September 2024 Global
Reporter: Carmella Haswell

Generic business image for news article
Image: TensorSpark/stock.adobe.com
Industry participants have called for further dedicated guidance to cover all types of sustainability-related repo.

The finding comes from the International Capital Market Association’s (ICMA’s) release of market feedback from its ‘2024 Repo and Sustainability Market Survey’, which was launched in February.

The survey aimed to deepen the understanding of existing market practices and identify issues for further reflection and future guidance.

It also builds on the observations and categorisations from ICMA’s 2022 paper on sustainability in the repo market.

Within its findings, ICMA also found confirmation that the majority of respondents active in this market primarily focus on repo transactions involving sustainable collateral. In addition, sustainability-related repo remains their top priority.

Market participants agreed that use of proceeds and sustainability-linked repo should be transacted under firms’ overarching sustainability frameworks or strategies, says ICMA.

In the summary, participants also highlight a consensus on which any green claims should remain with the repo seller, who retains the economic exposure to the assets, to avoid double-counting from an accounting perspective.

Guided by members of the Repo & Sustainability Taskforce, ICMA will continue to closely monitor the market evolution and is looking to work on expanded guidance as a next step.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
Advertisement
Subscribe today
Knowledge base

Explore our extensive directory to find all the essential contacts you need

Visit our directory →
Glossary terms in this article
→ Collateral
→ Repo

Discover definitions, explanations and related news articles in our glossary

Visit our glossary →