in both central bank operations and private repo markets. as a system of central banks that implements monetary policy and ensures adequate intraday liquidity by providing collateralised lending, the eurosystem is itself a large collateral receiver and is very much affected in its core activities by collateral availability in the financial system. at previous opportunities i have discussed in detail the initiatives that the ecb has already taken to enhance collateral availability for its own operations1, so that i do not need to repeat these today. however, the report not only looks at the central bank collateral frameworks of the eurosystem and other major central banks, but applies a comprehensive approach encompassing also the impact of related regulatory requirements and existing practices of speech by benoit cœure, member of the executive board of the ecb, ecb - dnb joint central bank seminar on collateral and liquidity, amsterdam, 1 october 2012. bis central bankers ’ speeches central counterparties ( ccps ). this report, therefore, complements the work of the bis markets committee on “ central bank collateral frameworks and practices ” that was published this march. let me underline the added value of this work. from a policy perspective, market participants are confronted with the increasing demand for collateral, which could raise challenges – particularly taking into account that not all collateral assets are equally accepted under each framework. the report takes a broad view, and provides information that extends beyond our day - to - day business. understanding differences in collateral acceptance is important to address the implications of the differences and to identify issues that merit further consideration by both policy - makers and market participants. as mentioned in the report, while understanding the differences among the collateral frameworks is important and having transparency in this respect is absolutely essential in the current environment, there should be no call for ultimate unification of collateral rules, given the different purposes for which collateralisation is provided. market participants will have to manage their respective pools of collateral in a way that allows them to provide collateral for different purposes, such as collateralisation in central bank operations, as assets in liquidity buffers of regulators and as margin requirements with central counterparties. i note that the report in fact sees a certain diversification across the collateral frameworks as a positive element that enhances resilience ; provided of course, that certain conditions are met, first and foremost that we have ex - ante transparency of the different collateral requirements and a smooth and efficient functioning at the level of market infrastructures. given the differences in collateral

frameworks, it is important that there are no obstacles in the transfer of collateral. in the euro area, continuous attention is needed on ensuring that there are sufficient settlement links between ( i ) csds, that these have appropriate operating hours to address the needs of the market, and that triparty collateral management services are further developed. on the latter, i pause for a moment to recall that one important milestone was achieved earlier today with the signing of a memorandum of understanding between ( i ) csds, banks ( in the name of the european repo council ) and a ccp, with the respective parties committing to work further on a solution for triparty settlement interoperability. triparty settlement interoperability is an important initiative that will help foster greater financial integration and harmonisation, reduce fragmentation and help to create a single european repo market. the aim of the “ tsi initiative ”, as you are all well aware, is to bring together borrowers and lenders, regardless of where the underlying liquidity or collateral is held, thereby avoiding the build - up of silos of collateral in the market. more should be done, and i therefore fully subscribe to the actions identified by cogesi. in particular, i encourage the group to further increase the transparency, clarity and understanding of the linkages between collateral frameworks, regulatory rules and market practices. we need also further improvements in the processes that support the mobilisation of collateral. the eurosystem will do its part in 2014, by abolishing the so - called repatriation requirement. that will allow for more efficient mobilisation of assets for use in eurosystem credit operations via the correspondent central banking model ( ccbm ). the eurosystem is also integrating the support of triparty collateral management services on a cross - border basis into its central bank framework and of course t2s, which will go live from 2015 to 2017, will support more efficient cross - border collateral transfer. from the industry, we may expect to see further improvements in the services that support a more optimal use of collateral assets. bis central bankers ’ speeches in this regard, i encourage you to analyse solutions to optimise the use of collateral. i am very interested in the group ’ s deliberations on the tools to increase the efficient use of collateral, and the implications of collateral transformation services. against a background of increasing demand for collateral, cogesi should drive further development of effective procedures for enhancing collateral