Reporting and transparency of securities financing transactions

20-10-2015

Securities financing transactions (SFTs) are a variety of secured transactions, which allow market participants to exchange assets temporarily, pledging them as guarantee for a funding transaction. They contribute significantly to the efficiency of financial markets, among others, by broadening and stabilising the money market, facilitating central bank operations, ensuring liquidity in the secondary debt market, contributing to more efficient settlement (through faster processing and failure prevention), and allowing more efficient employment of capital.

Securities financing transactions (SFTs) are a variety of secured transactions, which allow market participants to exchange assets temporarily, pledging them as guarantee for a funding transaction. They contribute significantly to the efficiency of financial markets, among others, by broadening and stabilising the money market, facilitating central bank operations, ensuring liquidity in the secondary debt market, contributing to more efficient settlement (through faster processing and failure prevention), and allowing more efficient employment of capital.