The European Banking Authority has launched a consultation on draft Regulatory Technical Standards (RTS) on additional collateral outflows.
The proposed draft RTS are aimed at developing methods to determine additional collateral outflows that stem from the impact of an adverse market scenario on an institution’s derivatives positions, financing transactions and other contracts, if material. The RTS also focus on capturing adverse changes in market valuation of derivatives and similar transactions and contracts that require collateral.
These draft RTS are expected to be submitted to the European Commission by 31 March 2014.
The consultation period runs until 14 August 2013.