Standards and Processes for Global Securities Financing Data Collection and Aggregation
Securities financing transactions (SFTs) such as securities lending and repurchase agreements (repos) play a crucial role in supporting price discovery and secondary market liquidity for a wide variety of securities. However, these transactions can also be used to take on leverage as well as mismatched maturity and liquidity exposures.
This report builds on policy recommendations to address financial stability risks in SFTs published in August 2013, in particular its recommendations to improve transparency of securities financing markets, and on the public consultation findings. The report sets out finalised standards and processes to allow the FSB to periodically collect from national and regional authorities aggregated data on SFTs. It also includes recommendations to national and regional authorities for the collection of consistent and comprehensive data from market participants. Collecting SFT data will allow authorities to identify and manage emerging risks in the financial system. The FSB will start working on the detailed operational arrangements with a view to initiate the official global data collection and aggregation by the end of 2018.