Clifford Chance
EU Regulation on Securities Financing Transactions – new rules on reuse of collateral
4 August 2015
The recently agreed EU regulation on securities financing transactions (SFTR) also imposes new rules on rights of reuse of collateral. In particular, the rules will require counterparties to provide new disclosures to the collateral provider if they receive financial instruments as collateral with a right of use or under title transfer arrangements. These rules are likely to take effect in mid-2016, will have retroactive effect in relation to existing collateral arrangements and will apply extra-territorially to non-EU counterparties receiving collateral from persons in the EU.
