Financial Stability Board – Standards and processes for global securities financing data

The Financial Stability Board (“FSB”) has recently published its Standards and Processes for Global Securities Financing Data Collection and Aggregation report. The proposed standards are based on the policy recommendations in the FSB report Policy Framework for Addressing Shadow Banking Risks in Securities Lending and Repos.

In its report, the FSB recommends that authorities obtain data on securities financing markets ie. securities lending and repos, to detect financial stability risks for the following reasons:

• it is important for investment and risk management strategies; and
• to have more visibility of developments and trends in securities financing markets.

The proposed standards explore in more detail what data is needed to define securities financing transactions and how the data can be used.

The FSB is collating comments on the proposed standards and the deadline is 12 February 2015. Work is due to be completed on developing standards and processes by the end of 2015.

Please click here to access the full report.

Should you require any further advice or information on the above, Cleveland & Co, your external in-house counsel, are here to help.