Box 8

ELIGIBLE ASSETS

Eligible assets

6.3.1 SCOPE AND ELEMENTS The Eurosystem credit assessment framework ( ECAF ) defines the procedures , rules and techniques which ensure that the Eurosystem requirement of high credit standards for all eligible assets is met .

to the zero to one year maturity bucket of fixed coupon instruments in the liquidity category to which the instrument is assigned .

ELIGIBILITY SPECIFICATIONS FOR UNDERLYING ASSETS

Eligible assets

Eligible collateral

CROSS BORDER USE OF ELIGIBLE ASSETS

CHAPTER 6 Eligible assets 6.1 .

Information on collateral NCB B Collateral

2 Tier one and tier two assets are subject to the risk control measures specified in Section 6.4 .

Article 11 Eligible assets 1 .

This account can be used for all eligible assets held in Euroclear , i.e. including eligible assets transferred to Euroclear through eligible links .

The standing facilities are administered in a decentralised manner by the national central banks .

This account can be used for all eligible assets held in Euroclear , i.e. including eligible assets transferred to Euroclear through eligible links .

Article 8 Eligible collateral 1 .

Legal acts related to the eligibility of collateral

They must be denominated in euro .

Eligible assets General considerations Tier one assets Tier two assets Risk control measures

Eligible assets General considerations Tier one assets Tier two assets Risk control measures

Eligible assets General considerations Tier one assets Tier two assets Risk control measures

Tier two assets are classified in three different haircut groups , reflecting differences in their intrinsic financial characteristics and in their liquidity .

Official Journal of the European Union CHAPTER 6 ELIGIBLE ASSETS

In exceptional circumstances or when required for monetary policy purposes , the ECB may decide to extend CCBM 's closing time until TARGET2 closing time . 6.6.2 LINKS BETWEEN SECURITIES SETTLEMENT SYSTEMS In addition to the CCBM , eligible links between EU SSSs can be used for the cross border transfer of marketable assets .

Eligible assets will be classified as either tier one or tier two assets .

Further temporary expansion of the list of assets eligible as collateral

The model may be used for all eligible assets .

Would counterparties located in those countries in which these assets are currently eligible expect any substantial disadvantage , either now or in the future , if these assets were removed from the list of eligible assets ?

Would counterparties located in those countries in which these assets are currently eligible expect any substantial disadvantage either now or in the future if these assets were removed from the list of eligible assets ?

Valuation principles for underlying assets Cross border use of eligible assets

Article 6 Admission of subordinated assets with adequate guarantees as eligible collateral 1 .

CLASSIFICATION OF ELIGIBLE ASSETS Liquidity categories for tier one assets Eligible tier one assets are to be allocated to one of four categories of decreasing liquidity1

2000X0776 EN 01.03.2010 007.001 38 M5 CHAPTER 6 ELIGIBLE ASSETS 6.1 .

It will be able to take collateral through all eligible SSSs and eligible linkages between them .

Table 4 Eligible assets for Eurosystem monetary policy operations Eligibility criteria Marketable assets ( 1 ) Non marketable assets ( 2 )

As a result , these categories of assets were added to the list of eligible collateral for the Eurosystem 's credit operations .

1.3 Eligible counterparties and assets The Eurosystem accepts a wide range of underlying assets for its credit operations .

The total amount of eligible assets J ( for j 1 to J

ECB Guideline on rules relating to eligible collateral

Boxes 1 .

Most categories of assets currently eligible as tier two assets will be eligible in the single list .

2.1 Non marketable assets ( bank loans ) Currently , non marketable assets ( including bank loans ) are eligible in six countries .

and only marketable assets ( as specified in Chapter 6 ) are used as underlying assets in outright transactions .

A distinction was therefore made , essentially for purposes internal to the Eurosystem , between two categories of assets eligible for Eurosystem monetary policy operations .