ISLA logo

Letter of Credit as Collateral

Letter of Credit as Collateral


Status: Best Practice Finalised, Last Updated: 26/04/2021

How should Letters of Credit be reported under SFTR?

Best Practice:
Members who have Letter of Credit should refer to their legal and/or compliance department for guidance as there is nothing in the regulations that specifically reference LOCs.

For information, we note that some member firms have taken the view that LOC's are not reportable as no transfer of title occurs and collateral is not realised until a default scenario. (SFTR-249)


Creating your PDF, please wait.

PDF created successfully.

Sorry, your PDF could not be created at this time.


Already a member? Login to your account

Interested in becoming a member?

ISLA’s members span the breadth and depth of the securities lending industry, and there are many benefits of joining the Association’s network.

Become a member today