On September 29, 2014, ESMA published a consultation paper on the  specification of main indices and recognized exchanges, for the purposes of the Capital Requirements Regulation (“CRR”). The CRR determines the way in   which firms must treat the credit risk of assets for which collateral has been taken. It sets out when securities are eligible as collateral, referring to equities and convertible bonds that are part of a “main index” and to debt securities that are listed on a recognized exchange. ESMA is required to prepare draft implementing technical standards (“ITS”) specifying the main indices and recognized exchanges for those purposes. The consultation paper includes the proposed draft ITS, lists  the main indices (Annex 1) and recognized exchanges (Annex 2) and describes the approach taken in identifying the relevant indices and exchanges. The consultation closes on November 1, 2014. ESMA is required to submit its proposed final draft ITS to the European Commission before December 31, 2014.

The consultation paper is available at: