International Securities Lending Association

EU proposes to extend 0% RSF for securities financing

The European Commission has proposed extending the 0% required stable funding factor for securities financing transactions with maturities up to six months, aligning with the US, UK, Japan and Switzerland, which have made this treatment permanent. The proposal aims to avoid negative impacts on capital market liquidity as the transitional provision is set to expire in June. The European Banking Authority would report on the impact every five years under the proposal. Finadium (01 Apr.)

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ICMA updates SFTR reporting guidelines

The International Capital Market Association has released the 10th update of its "Recommendations for Reporting under SFTR," which aims to clarify the Securities Financing Transactions Regulation's reporting framework and address ambiguities. The update includes guidance on reporting sponsored repos, security and cash collateral, and obligations of foreign branches in the UK. Securities Finance Times (31 Mar.)

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