The Swiss Financial Market Supervisory Authority FINMA has started the consultation period on its circular on repos and securities lending and borrowing (Repo/SLB), which is due to come into effect on 1 January 2010. In recent years, securities lending and borrowing or SLB has become an important instrument in the securities market. Amongst other ways, SLB is an important source for participants in the money market to obtain securities, while the money market is crucial for the monetary policy. Repos have proven to be a reliable way for the Swiss National Bank to manage interest rates and liquidity, even in exceptional circumstances. SLB can be conducted with or without cover. The share of securities borrowed without cover mainly from private and corporate clients, is significant. The circular aims to examine how SLB should be treated under the current liquidity regulations. In addition, detailed requirements on disclosure, the content of master agreements, processing and settlement aim at protecting creditors and investors engaged in SLB. Owing to the risks associated, the intention of this circular is that uncovered SLB will be restricted for unqualified investors. The consultation period will run until 2 November 2009.