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Clifford Chance

Clifford Chance


Strengthening regulation and oversight of shadow banking

5 November 2014

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

On 14 October 2014, the Financial Stability Board issued a regulatory framework on haircuts for non-centrally cleared securities financing transactions. The framework sets out what the FSB calls ‘qualitative standards’ for the methodologies used to calculate ‘haircuts’ and, for the first time, seeks to impose minimum haircuts – numerical haircut floors – to be used by firms providing finance to non-banks.

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