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| European Repo and Collateral Council | |
|---|---|
| Name | European Repo and Collateral Council |
| Abbreviation | ERCC |
| Formation | 2012 |
| Type | Industry body |
| Headquarters | London |
| Region served | Europe |
| Parent organization | International Capital Market Association |
European Repo and Collateral Council
The European Repo and Collateral Council coordinates market practice and policy for secured funding and collateral management across European wholesale financial markets, advocating standards for repurchase agreement transactions among dealers, custodians, central counterparties, and institutional investors. It liaises with regulators such as the European Central Bank, European Securities and Markets Authority, and national authorities including the Bank of England and Banque de France, while engaging market infrastructures like Euroclear and Clearstream. The council produces market standards, operational recommendations, and statistical publications used by participants including Deutsche Bank, BNP Paribas, Goldman Sachs, and BlackRock.
The council promotes consistent practice in repurchase agreement and securities lending markets, developing standards to foster liquidity, legal certainty, and operational efficiency among counterparties such as investment banks, custodian banks, pension funds, insurance companies, and central counterparties like LCH. It advocates with authorities including the European Commission, International Organization of Securities Commissions, Bank for International Settlements, and the Financial Stability Board to align market conventions with regulatory frameworks such as Basel III and EMIR.
Formed within the International Capital Market Association framework in response to post‑crisis reform debates after the Global Financial Crisis of 2007–2008, the council built on earlier initiatives by trade groups including the London Stock Exchange community and the Association for Financial Markets in Europe. Early milestones include contributions to discussions around the European Market Infrastructure Regulation and interaction with policy reviews by the European Systemic Risk Board and national central banks such as the De Nederlandsche Bank and Banco de España.
Organizational governance combines a steering committee, technical working groups, and secretariat services provided by ICMA in coordination with member firms such as Societe Generale, Credit Suisse, Morgan Stanley, and J.P. Morgan. Working groups cover topics linked to collateral optimization, tri-party repo arrangements with agents like Euroclear Bank, legal documentation such as master agreements influenced by domestic courts including the Cour de Cassation and High Court of Justice, and infrastructure resilience involving operators like TARGET2.
The council drafts templates, market practice guidance, and operational notes on transaction settlement, margining, and reuse of collateral referencing entities like European Banking Authority and clearing houses including Eurex Clearing. It compiles market data on repo volumes and haircuts used by participants such as Société Générale, UniCredit, Santander, and asset managers including Amundi and Vanguard. The council coordinates industry responses to events affecting liquidity such as sovereign bond repricing episodes tied to markets in Bundesrepublik Deutschland, France, Italy, and Spain.
Public outputs include consultation responses to the European Commission and research papers addressing reforms in securities financing transactions impacted by rules like SFTR and standards by IOSCO. Publications analyze interactions with capital standards articulated in Basel Committee on Banking Supervision documents and provide operational guidance relevant to market infrastructures such as CLS Group and SIX Swiss Exchange. Position papers have commented on impacts from central bank operations by institutions such as the Federal Reserve System and Swiss National Bank.
Membership spans global and European banks, asset managers, custodians, and clearing houses including State Street, Northern Trust, ING Group, Rabobank, Mizuho Financial Group, and Nomura. Stakeholders include supervisory authorities such as Deutsche Bundesbank, market infrastructures Clearstream, and representative bodies like the European Banking Federation and Investment Association. The council engages lawyers from firms active in securities finance disputes in jurisdictions like England and Wales, France, and Germany.
The council interacts with regulatory reforms on leverage ratio treatment, netting enforceability, and collateral reuse, influencing implementation approaches at the European Central Bank, European Securities and Markets Authority, and national competent authorities including BaFin and Consob. Its guidance has been cited in technical standards shaping reporting under SFTR and in supervisory dialogues involving the Single Supervisory Mechanism. The council also collaborates with policy bodies during stress events such as market dislocations previously observed in September 2019 and episodes linked to sovereign risk in Greece.
Category:International finance Category:Trade associations