Towards a Monitoring Framework for Securities Financing Transactions

48 Pages Posted: 5 Nov 2020

See all articles by Antoine Bouveret

Antoine Bouveret

European Securities and Markets Authority

Julien Jardelot

affiliation not provided to SSRN

Joachim Keller

Deutsche Bundesbank - Economic Research Centre

Philippe Molitor

affiliation not provided to SSRN

John Thea

affiliation not provided to SSRN

Mathieu Vital

Bank of England

Date Written: March, 2013

Abstract

Supervisory authorities around the world are currently engaged in a policy debate over how to improve the information available on repurchase agreements (repos) and securities lending markets. Repo and securities lending transactions commonly referred to as securities financing transactions (SFTs), play a major role in the financial system. Although these can be relatively low-risk transactions by themselves, their pervasive use may give rise to systemic risk, as was observed during the recent financial crisis. In order to establish and implement a monitoring framework that allows for an effective assessment of the financial stability risks associated with SFTs, a number of considerable hurdles must be overcome and important decisions must be made. One contribution of this paper is to identify the potential obstacles and difficulties that may hinder the implementation of a monitoring framework in Europe.

Keywords: securities lending, monitoring, securities financing transactions, systemic risk

JEL Classification: E44, G18

Suggested Citation

Bouveret, Antoine and Jardelot, Julien and Keller, Joachim and Molitor, Philippe and Thea, John and Vital, Mathieu, Towards a Monitoring Framework for Securities Financing Transactions (March, 2013). ESRB: Occasional Paper Series No. 2013/02, Available at SSRN: https://ssrn.com/abstract=3723332

Antoine Bouveret (Contact Author)

European Securities and Markets Authority ( email )

103 Rue de Grenelle
Paris, IDF 75007
France

HOME PAGE: http://www.esma.europa.eu

Julien Jardelot

affiliation not provided to SSRN

No Address Available

Joachim Keller

Deutsche Bundesbank - Economic Research Centre ( email )

Wilhelm-Epstein-Strasse 14
Frankfurt/Main D-60431
Germany

Philippe Molitor

affiliation not provided to SSRN

No Address Available

John Thea

affiliation not provided to SSRN

No Address Available

Mathieu Vital

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

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