Reinvested Cash Amount

Field 4.13 | Matching Date: n/a | Tolerance: n/a>

Status: Best Practice Finalised, Last Updated: 18/08/2021

Field 4.13 | Matching Date: n/a | Tolerance: n/a

Description:
Amount of the reinvested cash in a given currency.

Best Practice:
If Field 4.6 (Type of Collateral Component) is populated with "CASH" a value (x18 numerical characters including up to x5 decimals) shall be provided, else the field should be left blank.

ISLA SFTR Working Group has not given any direct best practice guidance on what constituent parts must be included as cash reinvestment as different firms have different opinions on how the text should be interpreted.

Examples of how to calculate cash reinvestment provided by other member firms can be seen below as well as on the ISLA website under the section RTS Best Practice 'SFTR Reinvested Cash Amount Example Field 4.13 v0.2'.PDF

Re-invested cash collateral amount = [A divided by (A+C)] x B

Where;

A. Cash Received, Eligible for Reuse. The sum of the cash received, if eligible for reinvestment, via:

• Loan Cash Rebates

• Loan Bulk Cash Pools

• Cash Collateral Received - Allocated by Tri-party Agent

B. Cash Posted. The sum of cash paid via:

• Borrow Cash Rebates

• Borrow Bulk Cash Pools

• Cash Collateral Paid - Allocated by Tri-party Agent

C. Cash Own. Sum of the market value of:

• Firm longs? or Proposal: set to zero? (note there is no agreement on how own cash should be treated by members).

• Intra-entity cash will be excluded from the calculation.

• Inter-entity cash will be included in the calculation.

• Cash received from to paid to counterparties which are members of the ESCB will be excluded from the calculation. (SFTR-132)