ECB Publishes Legal Framework For The Eurosystem Collateral Management System (ECMS)

RegCORE – Client Alert | Banking Union | Capital Markets Union | Eurosystem monetary policy

QuickTake

On 14 August 2024, the European Central Bank (ECB) published harmonised rules and arrangements for the mobilisation and management of collateral in Eurosystem credit operations. The new rules will take effect with the launch of the Eurosystem Collateral Management System (ECMS), which is scheduled to start on 18 November 2024.

The ECMS is part of the ECB's Vision 2020 which was launched in 2015 and preparatory work on ECMS beginning in December 2017 and its go live date on 18 November 2024, which was on 30 November 2023¹ moved from 8 April 2024 to this new date, will be truly transformative by creating one central point one set of procedures and one platform to manage all collateral. The ECMS thus is not only good for the ECB's activity but also the EU's on-going efforts towards completing the EU's Capital Markets Union (CMU).