Collateral Reuse Rules and Documentation Impacts

The EU regulation on securities financing transactions requires new disclosures for collateral that can be reused to provide additional awareness of the risks that this can cause to collateral providers with complex collateral ‘chains’ (see Article 15).

The rules apply retrospectively (so existing collateral agreements), and apply to collateral takers outside the EU, if the collateral provider is within the EU.  It looks like the rules will take effect in the first half of 2016 (agreement has already been reached – see here), and will add to the repapering requirements of existing collateral agreements and templates used for new ones.

To find out more see the regulation here​ and to find better ways to manage the growing documentation burden talk to us.