On Apr. 15, ITA CB updated on rules re monetary policy contracts.
ITA CB updated on monetary policy implementation, emergency liquidity assistance.
In context of management of collateral in Eurosystem credit operations and initiation, settlement of certain monetary policy operations, scheduled to launch Jun. 16, 2025.
Follows ECB Dec. 2024 published guidelines in the EU Official Journal, see #108821.
Overview
Recalls Eurosystem adopted Collateral Guideline to regulate movement of collateral, correspondent relationships of national central banks, settlement of specific operations.
Another to amend General Documentation re operational framework for monetary policy implementation including eligibility and valuation criteria for collateral.
Key Aspects
To introduce innovations in ITA CB regulations concerning conduct of monetary policy operations, some documents were amended.
I.e. General Contract Conditions for Access to Eurosystem Monetary Policy Operations (CG OPM); Annex A; Framework Agreement for Open Market Operations (CQ OMA),
Framework Agreement for Counterparty Initiative Transactions (CQ OSF); Master Agreement for US Dollar Advance Transactions (CQ USD); Eurosystem Monetary Policy Instruments - A Guide for Practitioners (OPM Guide) and its Annexes C, D, E, G and H.
References to concluded TLTRO-III program removed from regulation, further changes made to OPM CG for clarification purposes re treatment of counterparties subject to suspension measures (arts 18, 19, 23, 24).
Counterparties duties in event of corporate mergers (art 6, Annex M to OPM Guide).
Re rules on guarantees, General Conditions on guarantees for financing operations (CG GAR) amended and new documents prepared i.e. Contract for participation in ECMS platform(ECMS Contract) and Guide for operators re ECMS platform (ECMS Guide).
Also Guide for provision of bank loans as collateral for financing operations (Loan Guide) and Guide for movement of portfolios of additional loans as collateral for Eurosystem financing operations (Portfolio Guide).
Monetary policy counterparties invited to examine documents and carry out procedures required by respective competent branches in re signing of contractual documentation.
OPM Guide and Portfolio Guide
Further to the above-mentioned other documents were issued in context of guides.
Portfolio guide; operating instructions for the provision of collateral for loans with a public guarantee COVID-19 (annex 1).
Operating instructions for provision of additional loan portfolios (annex 2).
