Securities finance transaction (SFT)

Securities financing transactions (SFTs) allow investors and firms to use assets, such as the shares or bonds they own, to secure funding for their activities. A securities financing transaction can be:
• A repurchase transaction – selling a security and agreeing to repurchase it in the future for the original sum of money plus a return for the use of that money
• Lending a security for a fee in return for a guarantee in the form of financial instruments or cash given by the borrower
• A buy-sell back transaction or sell-buy back transaction
• A margin lending transaction