ECB publishes harmonised rules for collateral management
14 August 2024 Europe
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The European Central Bank (ECB) has published rules and arrangements for the mobilisation and management of collateral in Eurosystem credit operations.
According to the bank, the move marks a step towards further financial integration in the euro area and the capital markets union.
The harmonised rules and arrangements reflect on a number of developments, including the implementation of a Eurosystem policy which establishes that assets mobilised as collateral will be held in accounts in TARGET2-Securities (T2S).
It also covers the adoption of market standards relevant for Eurosystem collateral management, as set out in the Single Collateral Management Rulebook for Europe (SCoRE); and updates to the eligibility criteria applicable to securities settlement systems (SSSs).
The General Documentation has been amended to take account of Guideline ECB/2024/22 and implement certain other changes, for example, relating to the expression in face amount (FAMT) of the quantity of debt instruments to be eligible as collateral, and that comply with market standards for the denomination of securities.
The new rules and the amendments to the General Documentation will come into effect with the launch of the Eurosystem Collateral Management System (ECMS), which is planned for 18 November 2024.
The ECMS is a unified system for managing assets mobilised as collateral in Eurosystem credit operations. It will replace the existing individual collateral management systems belonging to the national central banks of the euro area countries.
According to the bank, the move marks a step towards further financial integration in the euro area and the capital markets union.
The harmonised rules and arrangements reflect on a number of developments, including the implementation of a Eurosystem policy which establishes that assets mobilised as collateral will be held in accounts in TARGET2-Securities (T2S).
It also covers the adoption of market standards relevant for Eurosystem collateral management, as set out in the Single Collateral Management Rulebook for Europe (SCoRE); and updates to the eligibility criteria applicable to securities settlement systems (SSSs).
The General Documentation has been amended to take account of Guideline ECB/2024/22 and implement certain other changes, for example, relating to the expression in face amount (FAMT) of the quantity of debt instruments to be eligible as collateral, and that comply with market standards for the denomination of securities.
The new rules and the amendments to the General Documentation will come into effect with the launch of the Eurosystem Collateral Management System (ECMS), which is planned for 18 November 2024.
The ECMS is a unified system for managing assets mobilised as collateral in Eurosystem credit operations. It will replace the existing individual collateral management systems belonging to the national central banks of the euro area countries.
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