A bill has been submitted to the Dutch parliament which implements an Amending Directive relating to the Settlement Finality Directive and the Directive on Financial Collateral Arrangements.

The existing Settlement Finality Directive provides that transfer orders become irrevocable after entry into a payment or securities settlement system. As systems are increasingly connected, the Amending Directive would oblige settlement systems to coordinate their rules regarding the moment of entry and irrevocability of transfer orders.

The amendments to the Directive on Financial Collateral Arrangements ensure that credit claims (i.e. loans) can be used as financial collateral in addition to funds and securities. This is intended to enable banks to provide more credit to consumers and businesses, thus improving competition and promoting availability of credit at more favourable terms.

The government expects the implementing bill to contribute to economic recovery and it has asked parliament to work towards implementation as soon as possible.