FSB delivers Global Shadow Banking Monitor 2017
In my book SFTR: A Survival Guide[i], I explained the importance of monitoring FSB shadow banking reports if one is to truly understand the essence of SFTR: As recitals 2-7 of SFTR acknowledge, the FSB’s reports have been instrumental in fashioning the EU’s SFTR legislation. Indeed, SFTR is the EU’s implementation of FSB recommendations (‘this […]
SFTR – Collateral Reuse (rehypothecation)
Collateral Reuse – PILLAR III Reuse of collateral provides liquidity and enables counterparties to reduce funding costs. However, it tends to create complex collateral chains between traditional banking and shadow banking, giving rise to financial stability risks… Reuse should take place only with the express knowledge and consent of the providing counterparty. SFTR[I] Principle […]
What is SFTR? A Whirlwind Tour of the 3 Limbs
What is SFTR? SFTR: Security Financing Transactions Regulation. Formally, Regulation (EU) 2015/2365…on transparency of securities financing transactions and of reuse and amending Regulation (EU) No 648/2012. It was adopted on 25 November 2015. SFTR is built on three pillars[i]: Transaction Reporting. Requirements for counterparties to SFTs to report all SFTs to central trade repositories; […]