FSB’s policy recommendations: Enhancing liquidity preparedness for non-bank market participants

Article summary

The Financial Stability Board (FSB) has published policy recommendations to enhance the liquidity preparedness of non-bank market participants for margin and collateral calls in centrally and non-centrally cleared derivatives and securities markets, including securities financing such as repo. The recommendations aim to address liquidity strains in the non-bank financial intermediation (NBFI) sector arising from spikes in margin and collateral calls during market stress.