Securities financing transaction (SFT) - Financial definition
Concise definition of the term securities financing transaction
Generic term designing transactions where a market participant uses assets he holds in order to fund activities in the market.
Comprehensive definition of the term securities financing transaction
STFs include a variety of secured transactions that have similar economic effects, such as:
- lending or borrowing securities and commodities
- repurchase (repo) or reverse repurchase transactions (reverse repo)
- buy-sell back or sell-buy back transactions
- collateral and liquidity swaps
The main categories are securities lending and repos.