EN ECB-PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 16 March 2016 
on financial instruments eligible for monetary policy operations 
(CON/2016/12) 
 
Introduction and legal basis 
On 3 February 2016 the European Central Bank (ECB) received a request from Banca Na ţională a 
României (BNR) for an opinion on a draft regulation on assets eligible for open market operations of BNR 
and on standing facilities granted by BNR (hereinafter, the ‘draft regulation’). 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and Article 2(2) of Council Decision 98/415/EC1, as the draft 
regulation relates to instruments of monetary policy in a Member State whose currency is not the euro. In 
accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central 
Bank, the Governing Council has adopted this opinion. 
 1.  Purpose of the draft regulation 
1.1 The draft regulation recasts the national legal framework governing assets eligible for monetary 
policy operations conducted by BNR
2. Its purpose is to establish transparent criteria for the 
acceptance of financial instruments as collateral  in BNR’s open market operations, and for being 
granted standing facilities with BNR. 
1.2 The draft regulation sets out, in particular: 
(i)  principles to be followed in conducting the eligibility assessment and the valuation, in 
applying risk control measures and in the management of financial instruments3;  
(ii)  general eligibility criteria for the accept ance of financial instruments for trading and as 
collateral in BNR’s open market operations, an d for being granted standing facilities with 
BNR, which take into account: (a) the type of issuer; (b) the type of asset; (c) the rating of an 
issuer and/or issue of financial instruments; and (d) the registration and settlement procedure
4; 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
2  See Chapter II of Regulation No 1/2000 of Banca Na ţională a României of 30 March 2000 regarding open market 
operations conducted by Banca Na ţională a României and standing facilities granted by it to eligible participants 
(republished in Monitorul Oficial al României , Part I, No 84 of 1 February 2008), which will be repealed once the draft 
regulation enters into force. 
3  See Article 2 of the draft regulation. 
4  See Article 3 of the draft regulation. 
ECB-PUBLIC  
2 (iii)  general legal requirements for the eligibility of financial instruments5; 
(iv)  specific eligibility criteria for different ty pes of debt instrument such as: government bonds, 
debt certificates issued by BNR, bonds issued by certain international financial institutions, 
bonds issued by regional or local public authorities, and mortgage bonds6; 
(v)  rules on the use and allocation of eligible assets in BNR’s operations7; 
(vi)  risk-control measures to be applied by BNR in relation to eligible assets, including valuation 
haircuts, variation margins, margin calls, and setting limits on the volume of assets with a 
high liquidity risk8; and 
(vii)  a valuation methodology for financial instruments9. 
 
2. General observations  
2.1  The ECB has no comments on the draft regulation. 2.2  As a Member State whose currency is not the euro Romania and, in turn, BNR retain their powers 
in the field of monetary policy according to national law
10 until such time as the relevant derogation 
is lifted and Romania adopts the euro. 
 
This opinion will be published on the ECB’s website.  
 Done at Frankfurt am Main, 16 March 2016. 
 
[signed]  
The President of the ECB 
Mario DRAGHI 
                                                 
5  See Article 12 of the draft regulation. 
6  See Articles 7 to 11 of the draft regulation.  
7  See Chapter IV of the draft regulation. 
8  See Article 17 of the draft regulation. 
9  See Chapter VI of the draft regulation. 
10  Article 282(4) of the Treaty and Article 42.2 of the Statute of the European System of Central Banks and of the 
European Central Bank.