FSB issues regulatory framework for haircuts on non-centrally cleared securities financing transactions.

The article offers the author's insights on the haircut regulatory framework issued by the Financial Stability Board (FSB) for non-centrally cleared securities financing transactions (SFTs). Topics discussed include the securities lending risks in the shadow banking system, the cash-collateralised securities lending, and the special repurchase agreements or repos. It also mentioned the SFTs' rules on haircuts in over-the-counter (OTC) market.