Esma says regulators should wait before imposing quantitative SFT haircut triggers
Decision on policy change should wait until 2018, authority says
The European Securities Markets Authority (Esma) has said any move to using quantitative methodology to impose "haircuts" on securities financing transactions (SFTs) should wait until more data becomes available in 2018.
In a report published on October 4, Esma said it was "too early" to draw "definitive conclusions" on how well using quantitative thresholds for imposing haircuts on SFTs would work in reducing the pro-cyclicality of European financial markets.
To decide on a policy it was
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