European Securities and Markets Authority Publishes Amendments to Eligible Collateral Standards Under Capital Requirements Regulation

The European Securities and Markets Authority has published draft Implementing Technical Standards amending the existing ITS that establish the standards for the main indices and recognized exchanges that can hold securities eligible as collateral under the revised Capital Requirements Regulation (or “CRR II”). The amendments: (i) modify the methodology used to identify the main indices whose instruments can be used as eligible collateral, to reflect changes in market structure; and (ii) enable credit institutions and investment firms to use instruments traded on equivalent third-country exchanges as eligible collateral, to reflect amendments made under CRR II.

Two versions of the amending legislation have been published – the first includes U.K. exchanges as recognized exchanges, in the event of a deal-based Brexit; the second does not include U.K. exchanges, in case of a no-deal Brexit. The draft ITS have been submitted to the European Commission, which should make its decision on whether to endorse the draft within three months.

View ESMA's draft amendments to the Implementing Regulation.

Return to main website.