Leverage Ratio Framework

Securities Financing Transaction Exposures 7.3.1 SFTs such as repurchase agreements, reverse repurchase agreements, security lending and borrowing, and margin-lending transactions where the value of the transactions depends on market valuations and the transactions are often subject to margin agreements, are included in the Leverage ratio exposure measure. 7.3.2 The treatment recognizes that secured lending and borrowing in the form of SFTs is an important source of Leverage, and ensures consistent international implementation by providing a common measure for dealing with the main differences in the operative accounting frameworks. Treatment of Securities financing transaction exposures: