Maijoor: securities financing needs to be clearer
09 June 2014 Berlin
Image: Shutterstock
The chair of the European Securities and Markets Authority (ESMA) has welcomed the EU’s move to require securities finance transactions to be reported to trade repositories.
Speaking at the International Capital Market Association Annual General Meeting and Conference in Berlin on 5 June, Steven Maijoor said that measures are needed to better understand the collateral cycle.
“There seems to be consensus on the increased importance of the collateral market (securities lending, repo market, collateral transformation) and its role in the general functioning of the financial system and even on financial stability.”
“We need measures to ensure that regulators have a good picture of collateral, and its risks to financial market functioning. Therefore, I am very happy that the European Commission has proposed a regulation that will require the reporting of securities financing transactions to trade repositories.”
Securities financing transactions were left outside the scope of Markets in Financial Instruments Directive, “so it is now an opaque market”, said Maijoor.
“I am confident that such a change could bring the same benefits as we are now observing with the reporting of derivatives to trade repositories under the European Market Infrastructure Regulation.”
Speaking at the International Capital Market Association Annual General Meeting and Conference in Berlin on 5 June, Steven Maijoor said that measures are needed to better understand the collateral cycle.
“There seems to be consensus on the increased importance of the collateral market (securities lending, repo market, collateral transformation) and its role in the general functioning of the financial system and even on financial stability.”
“We need measures to ensure that regulators have a good picture of collateral, and its risks to financial market functioning. Therefore, I am very happy that the European Commission has proposed a regulation that will require the reporting of securities financing transactions to trade repositories.”
Securities financing transactions were left outside the scope of Markets in Financial Instruments Directive, “so it is now an opaque market”, said Maijoor.
“I am confident that such a change could bring the same benefits as we are now observing with the reporting of derivatives to trade repositories under the European Market Infrastructure Regulation.”
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