In parallel to the Securities Finality Directive (SFD), the Financial Collateral Directive (FCD) is reviewed as it is closely related. For the FCD to continue to serve its purpose, it is important to consider developments that could affect its functioning and to ensure coherence across legislative frameworks. Relevant issues can arise from market developments (economic, financial or technological) and/or regulatory changes. Two issues that are dealt with in this consultation are also important for the SFD: recognition of ‘close-out netting provision’ and ‘financial collateral’ (‘cash’ and ‘financial instruments’ the two most commonly used forms of ‘collateral security’ under the SFD).