The European Central Bank (ECB) aims to include and present everyone in collateral and corporate actions discussions after Brexit, according to a representative at the ISITC conference in London.
The representative said that after the UK leaves the EU in March, as is expected, colleagues active in the UK will “always be presented in meeting groups and kept informed about all issues”.
In his presentation, the speaker explained that at the moment, the ECB has established a task force specifically for securities and collateral and tri-party systems, though he stated data management still needs to be looked at, which he indicated would be based on the ISO 20022 model.
The speaker also stated the Eurosystem Taskforce is pursuing harmonisation of Eurosystem’s collateral management, to which he said the bank would be enhancing collateral mobility and it should be a joint market effort.
The ECB is also working on a governance arrangement for TARGET2-Securities and convincing those in the industry the model is good for the market.
The ECB representative discussed ECB’s report released in September 2017 which revealed harmonisation achievements have been made—in technology especially.
Though he added, more than a year on from that report, there is still a need for interoperability and new technologies should apply in a common language.
