ECB: collateral eligibility and availability

The growing demand for collateral as a consequence of market and regulatory developments in recent years has led to an increased focus of the industry on availability and usability of high-quality collateral assets. Accordingly, the ECB contact group on euro securities infrastructures (COGESI), building on its July 2013 report on collateral eligibility requirements across various frameworks1, has set out to qualify the overall supply of high-quality collateral assets in the current new report and to examine what portion of this supply is effectively available and usable for financial institutions. Estimations in this respect are derived from various studies on the global supply of collateral assets for financing arrangements. The current report in particular explains that a non-negligible portion of the overall supply of high-quality assets is not available for use as collateral, and not all of the available collateral is usable due to certain securities settlement limitations. Accordingly, the report aims to establish the level of the “real supply” of collateral in the market.

The full report is available here.

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