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🔗 Back to Summary. 🇫🇷 French Version: 2017R0390_FR.11. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Références LVL1 <=> LVL2
Level 1 reference(s): 2014R0909_EN.59
Article 11 - Other collateral
1.
Other types of collateral to be used by a CSD-banking service provider shall consist of financial instruments that meet all of the following conditions:
(a)
they are freely transferable without any legal constraint or third party claims that impair their liquidation;
(b)
they are eligible at a central bank of the Union, where the CSD-banking service provider has access to regular, non-occasional credit (‘routine credit’) at that central bank;
(c)
they are denominated in a currency the risk of which the CSD-banking service provider is able to manage;
(d)
the CSD-banking service provider has a prearranged funding arrangement with the type of creditworthy financial institution referred to in point (e) of 2014 and specified in Article 38 of this Regulation, which provides for the conversion of these instruments into cash on a same-day basis.
2.
For the purposes of (c) of 2014, other type of collateral to be used by a CSD-banking service provider shall be financial instruments that meet the following conditions:
(a)
they are freely transferable without any legal constraint or third party claims that impair their liquidation;
(b)
they are denominated in a currency the risk of which the CSD-banking service provider is able to manage;
(c)
the CSD-banking service provider has both of the following:
(i)
a prearranged funding arrangement in accordance with point (e) of 2014 and specified in Article 38 of this Regulation, so that these instruments can be liquidated within five business days;
(ii)
qualifying liquid resources in accordance with Article 34 to a sufficient amount to ensure that it covers the time gap for liquidating such collateral in case of default of the participant.