The definition under the Capital Requirements Regulation (CRR) of when securities can be eligible as collateral refers to equities and convertible bonds that are constituents of a “main index” and to debt securities that are listed on a “recognised exchange”.

Article 197(8) CRR requires the European Securities and Markets Authority (ESMA) to produce draft implementing technical standards (ITS) that specify “the main indices” and “the recognised exchanges” to which reference is made in Article 197 and in other Articles of the CRR. ESMA published a consultation paper and draft ITS covering both issues on 29 September 2014.

ESMA has now published a final report containing feedback to its consultation and the final version of the draft ITS that will be submitted to the European Commission for endorsement. Following submission the Commission has three months in which to decide whether or not to endorse the ITS.

View ESMA publishes draft ITS under the CRR, 19 December 2014