Basel Committee proposes amendments to rules on haircut floors for securities financing transactions

Press release  | 
26 January 2021
  • Basel Committee proposes technical amendments to the calculation of minimum haircut floors for securities financing transactions
  • Amendments seek to address an interpretive issue relating to collateral upgrade transactions and correct a misstatement of the calculation formula applied to netting sets
  • Comments on the technical amendments welcome until 31 March

The Basel Committee on Banking Supervision published today for consultation two technical amendments to the standard on minimum haircut floors for securities financing transactions (SFTs). The technical amendments seek to address an interpretative issue relating to collateral upgrade transactions and correct for a misstatement of the formula used to calculate haircut floors for netting sets of STFs.

Technical amendments are defined as changes in standards that are not substantial in nature but that cannot be unambiguously resolved based on the current text.

Comments on the proposed technical amendments should be submitted here by Wednesday 31 March 2021. All comments will be published on the BIS website unless a respondent specifically requests confidential treatment.