An appropriate balance must be found between a sound production process with adequate controls and safeguards on the one hand, and cost-efficiency for contributing banks on the other hand. Also it is important that regulation is uniformly applied and enforced within the EU to avoid risks of further fragmentation in the money markets, and that international coordination is sought. In the longer term, a broader overhaul can be conceived, involving changes in the calculation methodology and possibly other changes to reflect the structural changes that have taken place in terms of the functioning of the money market since the onset of the crisis, such as the shift towards secured transactions. However, this process should be primarily driven by the market, based on the needs of end-users, while being supported by the public sector. In light of the fundamental importance of money market reference rates, we are closely following the developments taking place as regards the shrinking number of panel members for establishing EURIBOR and EONIA rates. Given the authorities’ commitment to addressing the shortcomings revealed in the rate-setting process, it is in the interest of markets that banks remain in the panel while the regulatory framework is being amended and behave as responsible market participants, thus preventing potential disruption in the functioning of an important financial market segment. Related to the shift of money market transactions to the secured segment is the use of central counterparties (CCPs). 8 In 2012, CCP repo transactions accounted for 55% of all repo transactions (up from 50% in 2010).

13 Trade repositories provide a comprehensive overview of the transactions in the markets they serve, which contributes to better risk management, public supervision and oversight as well as market discipline. The ECB actively supports the current work to develop such a central database for the EU repo market. 14 It could be established in a joint effort by public authorities and the financial industry. b)  Collateral optimisation  Let me now turn to the second point on collateral optimisation. As recognised in the CPSS report, the “efficient and flexible use of collateral facilitates market participants’ collateral management and can contribute to the development of liquidity and smoothly functioning repo markets”. This was considered to hold true for repo markets in normal times as well as allowing an enhancement of the resilience of repo markets in times of stress. The need for efficient and flexible use of collateral facilities has even become  12  See, for instance, D. Duffie and H. Zhu, “Does a Central Clearing Counterparty Reduce Counterparty Risk?”, Review of Asset Pricing Studies, Vol. 1, Issue 1, December 2011. 13  Trade repositories are central databases that compile and aggregate data across various execution and clearing venues. 14  See Vítor Constâncio, Introductory remarks to the ECB workshop – Repo market and securities lending: towards an EU database, 3 December 2012, see https://www.ecb.int/press/key/date/2012/ html/sp121203.en.html. BIS central bankers’ speeches  5  greater in the past couple of years, taking into account the generally increasing demands for collateral assets coming from various quarters.