| Popis: |
The more cautious approach of market participants together with initiatives by regulators regarding the structure of the derivatives market have accentuated the use of collateral to secure market exposures over the past years and will probably continue to do so for many more to come. This article examines the actual and rapid mobilisation of the eligible collateral, irrespective of where it is held and in what form – either to meet a permanent need or to respond to crisis situations. To address this question, the author considers a market place comprising a central securities depository, such as Euroclear, and the community of domestic and international banks that are also its clients. Indeed, this approach provides for a large, open and neutral market for mobilising collateral and sets out to dismantle the technical and commercial barriers that fragment and raise the costs of its management. This infrastructure is known as a collateral highway, as opposed to the narrower concept of a collateral hub. The aim is to be able to exchange, in different places (not just one recognised place) and among participating depositories, collateral in the form of any asset provided that it is recognised as eligible by private lenders, clearing houses or central banks. It will take time to create this large market place but significant steps will have been taken before the end of the year. Already, all securities held with Euroclear, or with a national or international depository, can be mobilised and easily substituted. |
