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SFTR go live confirmed for Q2 2020

SFTR go live confirmed for Q2 2020

The European Commission has yesterday adopted the measures under the Securities Financing Transactions Regulation (SFTR), effectively setting the go-live date at Q2 2020.

Part II: The Fed releases rules on capital for GSIBs, includes extra requirements for securities financing trades

This is part II of our post on the Fed’s new capital rules. We look the calculation methodology and some observations about the rules. 

How is the SFT calculation done?

Part I: The Fed releases rules on capital for GSIBs, includes extra requirements for securities financing trades

The Fed has released the latest capital rules for Global Systemically Important Bank Holding Companies (GSIBs). One critical part of this set of rules is the inclusion of a second calculation methodology that includes the degree of dependence on securities financing trades. Banks will be subject to the higher of the two calculations when determining their capital conservation buffer. The Fed has been projecting the need to protect against repo runs in a crisis for a while and this is it.