The Basel Committee on Banking Supervision updated its Frequently Asked Questions related to the Basel III leverage ratio framework. This framework, initially adopted in January 2014, is designed to encourage banks to maintain sufficient levels of liquidity to respond to market stress situations, and not overly rely on short-term funding to support less liquid assets (click here to access the framework). Among other matters, the new FAQs address netting of securities financing transactions with no explicit ending dates (they are not eligible for Basel III netting) and the treatment of long settled transactions and failed trades (they should be treated according to their accounting classification).