Securities Financing Transaction: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create the page. Source: SFT page.) |
imported>Doug Williamson (Add link.) |
||
| (5 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
''Securities Financing Transactions Regulation.'' | |||
(SFT). | (SFT). | ||
SFTs allow market participants to access secured funding by using their assets to finance themselves. | SFTs allow market participants to access secured funding by using their own assets to finance themselves. | ||
This involves the temporary exchange of assets as collateral for a funding transaction. | This involves the temporary exchange of assets as collateral for a funding transaction. | ||
| Line 7: | Line 9: | ||
An example of an SFT is a repurchase agreement. | An example of an SFT is a repurchase agreement. | ||
For the purposes of the Securities Financing Transaction Regulation (SFTR), SFTs can be used to describe any transaction where securities are used to borrow cash, or offered as collateral for cash deposits. | |||
It does not include derivative contracts, which are covered by the European Market Infrastructure Regulation (EMIR), but it does cover liquidity swaps and collateral swaps (which are outside of EMIR reporting). | |||
== See also == | == See also == | ||
* [[Collateral]] | * [[Collateral]] | ||
* [[Collateral swap]] | |||
* [[EMIR]] | |||
* [[Liquidity swap]] | |||
* [[Repurchase agreement]] | * [[Repurchase agreement]] | ||
* [[Securities Financing Transactions Regulation]] | |||
* [[Security]] | * [[Security]] | ||
* [[Transaction]] | |||
[[Category:Corporate_financial_management]] | |||
[[Category:Cash_management]] | |||
Latest revision as of 11:23, 14 July 2022
Securities Financing Transactions Regulation.
(SFT).
SFTs allow market participants to access secured funding by using their own assets to finance themselves.
This involves the temporary exchange of assets as collateral for a funding transaction.
An example of an SFT is a repurchase agreement.
For the purposes of the Securities Financing Transaction Regulation (SFTR), SFTs can be used to describe any transaction where securities are used to borrow cash, or offered as collateral for cash deposits.
It does not include derivative contracts, which are covered by the European Market Infrastructure Regulation (EMIR), but it does cover liquidity swaps and collateral swaps (which are outside of EMIR reporting).
