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The Commission issued a proposal to amend the Settlement Finality Directive and the Financial Collateral Directive to strengthen the protection of settlement systems and financial collateral arrangements.
The main changes include the explicit protection of the SFD as regards night-time settlement and linked systems. The proposal also broadens the scope of the protection provided by both directives by including credit claims eligible for the collateralisation of central bank credit operations. Finally, the proposal introduces a number of simplifications and clarifications to facilitate application of the FCD and SFD.
The proposal facilitates the use of credit claims as collateral by suggesting a light regime for the evidencing of the provision of credit claims as collateral instead of a lengthy procedure whereby proof of each individual credit claim would be required. The proposal also suggests deleting the unused opt-out provision in Article 4(3) FCD and seeks to eliminate the outdated references in the two directives. As regards the SFD, clarifying its provisions will simplify its application. For example, the proposal clarifies the personal scope of the SFD by clearly including Electronic Money Institutions in Article 2.
Impact Assessment - Executive Summary