Download Reporting Form SRF 536.0 Repurchase Agreements Instructions

DRAFT
September 2012
Reporting Form SRF 536.0
Repurchase Agreements
Instructions
These instructions assist completion of Reporting Form SRF 536.0 Repurchase Agreements
(SRF 536.0).
SRF 536.0 collects information on repurchase agreements of an RSE. Information reported in
SRF 536.0 is collected for prudential, publication and statistical purposes. Information
reported in SRF 536.0 is also required for the purposes of the Australian Bureau of Statistics.
Reporting level
SRF 536.0 must be completed for each RSE (excluding SAFs and SMADFs).
Interpretation
For the purposes of these instructions:
AASB means the Australian Accounting Standards Board;
RSE means registrable superannuation entity as defined in section 10 of the SIS Act;
RSE licensee means a constitutional corporation, body corporate, or group of
individual trustees, that holds an RSE licence granted under section 29D of the SIS Act;
Small APRA Fund (SAF) means a superannuation entity that is a regulated
superannuation fund within the meaning of the SIS Act that has fewer than five
members;
SESCA means Australian Bureau of Statistics Standard Economic Sector
Classifications of Australia, 2008;
Single Member Approved Deposit Fund (SMADF) means a superannuation entity that
is an approved deposit fund within the meaning of the SIS Act and has only one
member; and
SIS Act means Superannuation Industry (Supervision) Act 1993.
Specific instructions
Report all items as at the end of the reporting period. Report the fair value, within the
meaning given in AASB 13 Fair Value Measurement, in thousands of dollars for all items
unless otherwise specified.
Report all items in accordance with the Australian Accounting Standards unless otherwise
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specified.
Terms highlighted in bold italics indicate that the definition is provided in these instructions.
Additional definitions are provided at the end of these instructions.
Securities subject to repurchase and resell and security lending and
borrowing
Repurchase/resale agreements (repos) are undertaken for the purposes of liquidity
management, increasing income generated from a security, and/or to minimise the cost of
borrowing. Securities lending/borrowing tends to take place to cover ‘short’ positions in a
security, and/or to increase income generated from a security. Repos and securities
lending/borrowing are very similar, with only a very fine division between the two types of
transactions.
In both cases the arrangement involves the transfer of legal ownership of securities (debt or
equity) between the original holder and ‘borrower’. Including the right for the ‘borrower’ to
on-sell the securities. In both transactions, the market risk on the security and the right to
holding gains (and losses) and income generated by the security remains with the original
holder. Repos and securities lending/borrowing both occur at a specified price with a
commitment to repurchase the same or similar securities at a fixed price on a future date,
which is specified in the contract or available on demand.
Primarily the difference between repos and securities lending/borrowing transactions is that
securities lending/borrowing involves the payment of a fee to the ‘lender’ as incentive to
agree to the transaction as the fee generates an additional return on the security. The fee is
independent of any income that may be earned on the security. Repo transactions however
generate interest income for the ‘borrower’ although in certain circumstances where the cash
provider (‘borrower’) has a specific need for a security, the borrowing rate could fall to zero.
Repos involve the provision of collateral and an exchange of cash whereas securities
lending/borrowing doesn’t necessarily involve cash exchange or collateral.
Debt securities purchased under agreements to resell and security borrowing
by issuer
Item 1 collects information about debt securities purchased under agreements to resell and
borrowed, by issuer of the debt security and counterparty to the agreement.
Item 1
Report the total debt securities purchased under agreement to resell
and security borrowing in item 1.13 as the sum of debt securities
purchased under agreement to resell or borrowed from a: Reserve Bank
of Australia in item 1.1, bank in item 1.2, other authorised deposittaking institution in item 1.3, registered financial corporation in item
1.4, life company in item 1.5, registrable superannuation entity in item
1.6, general or health insurance company in item 1.7, state and
territory central borrowing authority in item 1.8, securitiser in item 1.9,
other financial institution in item 1.10, other corporation in item 1.11
and non-resident in item 1.12.
Report the issuer of debt securities as: Commonwealth government in
column 1, state and territory central borrowing authority in column 2,
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bank in column 3, the portion of debt securities issued by a bank that are
covered bonds in column 4, securitiser in column 5 and other resident
issuer in column 6.
Equity securities purchased under agreements to resell and security
borrowing by issuer
Item 2 collects information about the equity securities purchased under agreements to resell
and borrowed by issuer of the equity security and counterparty to the agreement.
Item 2
Report the total equity securities purchased under agreement to resell
and security borrowing in item 2.13 as the sum of equity securities
purchased under agreement to resell or borrowed from a: Reserve Bank
of Australia in item 2.1, bank in item 2.2, other authorised deposittaking institution in item 2.3, registered financial corporation in item
2.4, life company in item 2.5, registrable superannuation entity in item
2.6, general or health insurance company in item 2.7, state and
territory central borrowing authority in item 2.8, securitiser in item 2.9,
other financial institution in item 2.10, other corporation in item 2.11
and non-resident in item 2.12.
Report other financial institution reported in column 10 as total
securities in column 13 minus the sum of total equity securities
purchased under agreement to resell or borrowed from a: trading
enterprise owned by the Australian Commonwealth government
reported in column 1, listed trading enterprise reported in column 2,
unlisted trading enterprise reported in column 3, bank reported in
column 4, other authorised deposit-taking institution reported in
column 5, life company reported in column 6, general or health
insurance company reported in column 7, listed investment company
reported in column 8, unlisted investment company reported in column
9, other resident reported in column 11 and non-resident reported in
column 12.
Debt securities sold under agreements to resell and security lending by issuer
and security lending
Item 3 collects information about debt securities sold under agreements to resell and loaned
by the issuer of the debt security and counterparty to the agreement.
Item 3
Report the total debt securities sold under agreement to repurchase and
security lending in item 3.13 as the sum of debt securities purchased
under agreement to resell or loaned from a: Reserve Bank of Australia
in item 3.1, bank in item 3.2, other authorised deposit-taking institution
in item 3.3, registered financial corporation in item 3.4, life company in
item 3.5, registrable superannuation entity in item 3.6, general or
health insurance company in item 3.7, state and territory central
borrowing authority in item 3.8, securitiser in item 3.9, other financial
institution in item 3.10, other corporation in item 3.11 and non-resident
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in item 3.12.
Report the issuer of debt securities as: Commonwealth government in
column 1, state and territory central borrowing authority in column 2,
bank in column 3, the portion of debt securities issued by a bank that are
covered bonds in column 4, securitiser in column 5 and other resident
issuer in column 6.
Equity securities sold under agreements to resell and security lending by
issuer
Item 4 collects information about equity securities sold under agreements to resell and loaned
by issuer of the equity security and counterparty to the agreement.
Item 4
Report the total equity securities purchased under agreement to resell
and security lending in item 4.13 as the sum of equity securities
purchased under agreement to resell or loaned from the Reserve Bank of
Australia in item 4.1, bank in item 4.2, other authorised deposit-taking
institution in item 4.3, registered financial corporation in item 4.4, life
company in item 4.5, registrable superannuation entity in item 4.6,
general or health insurance company in item 4.7, state and territory
central borrowing authority in item 4.8, securitiser in item 4.9, other
financial institution in item 4.10, other corporation in item 4.11 and
non-resident in item 4.12.
Report other financial institution reported in column 10 as total
securities in column 13 minus the sum of total equity securities sold
under agreement to resell and security lending from a: trading
enterprise owned by the Australian Commonwealth government
reported in column 1, listed trading enterprise reported in column 2,
unlisted trading enterprise reported in column 3, bank reported in
column 4, other authorised deposit-taking institution reported in
column 5, life company reported in column 6, general or health
insurance company reported in column 7, listed investment company
reported in column 8, unlisted investment company reported in column
9, other resident reported in column 11 and non-resident reported in
column 12.
Glossary of additional items
Reserve Bank Represents the public financial corporation with responsibility for
monetary policy, issuing banknotes, holding Australia’s international
of Australia
reserves and providing banking services to the Commonwealth.
Bank
Represents an authorised deposit-taking institution that is classified as a
'bank', which is a corporation, in relation to which an authority under s.
9(3) is in force and which holds a consent under s. 66 of the Banking Act
1959 to use the word 'bank'. Includes: development banks and foreign
banks licensed to operate in Australia. Excludes: merchant banks and
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non-resident banks.
Other
authorised
deposit-taking
institution
Represents a corporation, in relation to which an authority under s. 9(3)
of the Banking Act 1959 is in force, but which does not hold a consent
under s. 66 to use the word 'bank'.
Registered
financial
corporation
Represents a corporation that has registered under the Financial Sector
Collection of Data Act 2001 (FSCOD Act) and which is categorised as a
registered entity within the meaning given in the FSCOD Act. Includes:
money market corporations (i.e. merchant banks), pastoral finance
companies, finance companies and general financiers (other); and cash
management trusts. Excludes: intra group financiers
Life company
Represents a body corporate that is registered under the Life Insurance
Act 1995 to carry on life insurance business in Australia.
Represents a registrable superannuation entity or an exempt public sector
Registrable
superannuation superannuation scheme within the meaning given in s. 10(1) of the SIS
Act.
entity
General
health
insurance
company
or Represents a body corporate that is authorised under the Insurance Act
1973 to carry on insurance business in Australia or a corporation that
provides health insurance.
State
and
territory central
borrowing
authority
Represents a central borrowing authority, established by a state and
territory government within Australia. Central borrowing authorities
primarily provide finance for public corporations and notional
institutional units and other units owned or controlled by the
government. Reference: SESCA, 2008.
Securitiser
Represents a financial vehicle that issues asset-backed securities (i.e.
securities consisting of units which pool various types of assets such as
residential mortgages, commercial property loans and credit card debt,
and package them as collateral backing for bonds or short-term debt
securities, which are then sold to investors).
Other issuer
Represents an institutional unit that is not otherwise identified as a
Commonwealth government, State and territory central borrowing
authority, bank or securitiser.
Other financial Represents a financial institution that is not otherwise: Reserve Bank of
Australia, bank, other authorised deposit-taking institution, registered
institution
financial corporation, life insurance company, registrable
superannuation entity, general or health insurance company, state or
territory central borrowing authority or securitiser. Includes: economic
development corporations owned by governments; co-operative housing
societies; investment companies; and common funds including cash
common funds. Excludes: non-resident enterprises.
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Non-resident
Represents an individual, business or other organisation domiciled in a
country other than in Australia. Includes: foreign branches and foreign
subsidiaries of Australian enterprises; and residents of Norfolk Island
and other external territories of Australia. Excludes: Australian branches
or subsidiaries of an overseas company.
Commonwealth
government
Represents a public sector unit controlled by the Government of the
Commonwealth of Australia. Includes: Government units, Public
financial corporations, Public non-financial corporations and local
governments (and controlled entities) of the Christmas and Cocos
Keeling Islands. Reference: SESCA 2008.
Covered bond
Represents a bond, note or other debenture issued by an authorised
deposit-taking institution (ADI), liabilities to the holders of which are
recoverable from the ADI; and secured by assets beneficially owned by a
covered bond special purpose vehicle. Reference: Banking Act 1959, s.
26.
Trading
enterprise
owned by the
Australian
Commonwealth
government
Represents a business owned 50 per cent or more by the Australian
Commonwealth Government or controlled by the Australian
Commonwealth Government through legislation, decree or regulation.
Includes: a business which produces goods or non-financial services for
sale at market prices. Excludes: government departments; and
government-owned financial institutions.
Listed trading Represents a business, which is listed on an Australian or an
international stock exchange, which produce goods or non-financial
enterprise
services for sale at market prices.
Unlisted
trading
enterprise
Represents a business, which is not listed on an Australian or an
international stock exchange, which produce goods or non-financial
services for sale at market prices.
Listed
investment
company
Represents a business, which is listed on an Australian or an
international stock exchange, which provides exposure to a diversified
portfolio of investments (including, but not limited to, Australian shares,
international shares, private equity or specialist sectors) on behalf of
their investors.
Unlisted
investment
company
Represents a business, which is not listed on an Australian or an
international stock exchange, which provides exposure to a diversified
portfolio of investments (including, but not limited to, Australian shares,
international shares, private equity or specialist sectors) on behalf of
their investors.
Other resident
Represents an institutional unit that has a centre of economic interest
within the economic territory of Australia (as evidenced by the location
of the unit’s principal residence or place of location).
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