Securities Financing Transaction: Difference between revisions
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imported>Doug Williamson (Expand definition: Source: The Treasurer online Aug 2019 https://www.treasurers.org/hub/treasurer-magazine/five-minutes-on-sftr-reporting-and-leases) |
imported>Doug Williamson (Add link.) |
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''Securities Financing | ''Securities Financing Transactions Regulation.'' | ||
(SFT). | (SFT). | ||
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* [[Liquidity swap]] | * [[Liquidity swap]] | ||
* [[Repurchase agreement]] | * [[Repurchase agreement]] | ||
* [[Securities Financing | * [[Securities Financing Transactions Regulation]] | ||
* [[Security]] | * [[Security]] | ||
[[Category:Corporate_financial_management]] | [[Category:Corporate_financial_management]] | ||
[[Category:Cash_management]] | [[Category:Cash_management]] | ||
Revision as of 22:46, 7 July 2021
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).
