Value of Reused Collateral

Field 4.08 | Matching Date: n/a | Tolerance: n/a>

Status: Best Practice Finalised, Last Updated: 26/04/2021

Field 4.08 | Matching Date: n/a | Tolerance: n/a

Description:
Total value of the collateral reused when it can be defined at SFT transaction level.

Best Practice:
If field 4.6 (Type of Collateral Component) is populated with "SECU", one of the fields 4.8 (Value of Reused Collateral) or 4.9 (Estimated Reuse of Collateral) should be populated.

When populated, a value (x18 numerical characters including up to x5 decimals) shall be provided, else the field should be left blank.

For the re-use calculation formula refer to page 4 of the FSB's report on Transforming Shadow Banking into Resilient Market-based Finance of 23 February 2016

For ESCB Collateral Re-Use: According to the regulation, SFTs that you execute with ESCB counterparties are non-reportable for SFTR. However, if you remove SFTs executed with ESCB counterparties from the collateral reuse calculation, the calculation can produce an error.

For example:

Borrow 100 from an ECB counterparty
Loan of 100 to non-ECB counterparty
No firm assets

Collateral reuse = (0 / 0) *100 = error

In this case where the calculation produces an error, '0' should be reported. (SFTR-127)