Author: admin

In order to address this fragmentation, the Eurosystem’s Advisory Group on Market Infrastructures for Securities and Collateral (AMI-SeCo) is working towards developing a Single Collateral Management Rulebook for Europe (SCoRE), which defines common rules for managing collateral.

The harmonised collateral management processes laid down in SCoRE will ultimately make it easier for:

• market participants to move their securities and collateral safely and efficiently between EU countries, without friction or restrictions;
• investors to buy securities in any EU country and use them as collateral in the same or any other EU country;
• banks to move collateral and securities quickly to where they are needed.

It will also lead to:

• increased efficiency, by enabling collateral management across Europe from a single account using the same procedures;
• lower costs, as a single rulebook will allow market participants to implement a single set of procedures;
• interoperability, resulting from common messaging based on a common set of data across financial market infrastructures;
• lower risk in managing securities and collateral as a result of the standardisation of processes;
• a level playing field for all market participants across Europe;
• increased reach beyond domestic markets.