The Financial Stability Board delays SFT implementation by one year

07.09.2020

The Financial Stability Board (FSB) announced a one-year deferral of the implementation deadlines for minimum haircut standards for non-centrally cleared securities financing transactions (SFTs), as a response to the COVID-19 pandemic and to the decision of the Basel Committee on Banking Supervision (BCBS) to postpone the implementation of the final Basel III framework. In many jurisdictions, the FSB’s framework for numerical haircut floors for bank-to-non-bank transactions will be implemented through the Basel III framework. So the implementation dates related to minimum haircut standards for non-centrally cleared SFTs will be delayed by one year - for bank-to-non-bank transactions to January 2023 from January 2022, and for non-bank-to-non-bank transactions to January 2025 from January 2024.