##arty collateral management services, as many of you well know, allow institutions to manage their assets via a triparty agent and are ultimately targeted towards optimising the use of clients ’ assets. with the incorporation of these services into the eurosystem framework on a cross - border basis, they will become operationally accessible to all eurosystem counterparties, regardless of the location of the counterparty or the respective triparty service. this has raised a set of issues, primarily related to legal implementation, which also needed to be addressed. once live, this enhancement will offer eurosystem counterparties the ability to manage their overall collateral holdings in a more flexible and efficient manner and to flexibly switch their collateral between central bank refinancing and interbank market financing. central banks of course have not been alone in taking initiatives over the last few years. on the market, we have seen huge progress in the range and sophistication of services on offer to clients. a new report from basel covers developments in collateral management services see, for example, “ velocity of pledged collateral : analysis and implications ”, working paper no 11 / 256, imf, november 2011. bis central bankers ’ speeches across g20 countries and takes stock of the existing and upcoming services in this field. 2 the many benefits gained from the innovation of service providers and the collaboration among them can be welcomed by central banks, as they allow for better information on collateral, better access to collateral and better mobility of available securities. indeed, it is doubtful whether market participants would cope with temporary shortages of collateral arising from the regulatory reforms without the innovation that helps in the distribution of collateral. on the other hand, the increased sophistication of such services also implies increased complexity, increased operational and legal risks and, most notably, increased interdependencies stemming from new linkages between service - providing firms. a shortage of collateral or an inability to transfer collateral promptly can in some cases be an early indicator of liquidity problems or an even deeper set of issues. close cooperation with competent supervisory and oversight authorities is therefore warranted, as the legal heterogeneity still impedes a fully functioning internal market. conclusion let me conclude. as i mentioned at the outset, we have already observed a significant change in the collateral landscape over the last few years and it is a landscape that is continuing to evolve. in particular, key regulatory reforms have yet to make a real impact in the market and innovation in post - trade arrangements

will be further pursued by the public and private sectors alike. although the overall global supply of high - quality assets appears substantial, existing regional imbalances mean that we cannot become complacent. we must also continue to be vigilant regarding issues affecting availability and mobility, and take actions that address the factors that hamper the fluid transfer of assets, without mistaking liquidity and solvency issues for market inefficiencies. in europe, the t2s project has made significant progress and, when implemented, it will be a significant step forward. t2s allows for more efficient cross - border collateral flows so that collateral in one country will be easily accessible in other countries. this also offers possibilities for establishing linkages between t2s central securities depositories ( csds ) and those from other geographical areas, which could ultimately lead to the creation of a more global network for the mobilisation of collateral assets. this type of global reach will make it more attractive to connect to europe. in view of the planned discussion on bringing the right collateral to the right place at the right time, i will leave you with these suggestions for further reflection and i look forward to receiving feedback on your deliberations in due course. i would like to end by wishing you an enjoyable second day of the seminar, with lively and fruitful discussions and i look forward to further cooperation among central bankers on the topic of collateral in all its forms in the months and years ahead. see the cpmi report on collateral management services published on 8 september 2014. bis central bankers ’ speeches