As part of the Financial Stability Board's (FSB) framework for haircut floors for non-centrally cleared securities financing transactions (SFTs), the FSB recommended that the Basel Committee on Banking Supervision incorporate the haircut floors into the capital requirements for non-centrally cleared SFTs by setting higher capital requirements for transactions with haircuts traded below the haircut floors. The objective of the proposal is to incentivise banks to set their collateral haircuts above the floors rather than hold more capital.

The consultation is open until Tuesday, 5 January 2016.