On 26 November 2019, the Financial Stability Board (FSB) published an updated version (dated 25 November 2019) of its regulatory framework for haircuts on non-centrally-cleared securities financing transactions (SFTs).

The framework aims to address financial stability risks associated with SFTs. The framework includes numerical haircut floors to apply to non-bank-to-non-bank SFTs that were finalised after taking into account responses to a public consultation in October 2014.

The revised framework has updated the text in Annexes 2, 3 and 4 to take into consideration the extended timelines for implementation of the framework to January 2022 for bank-to-non-bank transactions and to January 2024 for non-bank-to-non-bank transactions as announced in July 2019.