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In this act Article 4 of 42

Article 4 — Eligible collateral

Financial servicesLevel 2RTSEMIRIn forceOfficial source

4(1)

1.A counterparty shall only collect collateral from the following asset classes:

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4(1)(a)
(a)cash in the form of money credited to an account in any currency, or similar claims for the repayment of money, such as money market deposits;
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4(1)(b)
(b)gold in the form of allocated pure gold bullion of recognised good delivery;
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4(1)(c)
(c)debt securities issued by Member States' central governments or central banks;
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4(1)(d)
(d)debt securities issued by Member States' regional governments or local authorities whose exposures are treated as exposures to the central government of that Member State in accordance with Article 115(2) of Regulation (EU) No 575/2013;
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4(1)(e)
(e)debt securities issued by Member States' public sector entities whose exposures are treated as exposures to the central government, regional government or local authority of that Member State in accordance with Article 116(4) of Regulation (EU) No 575/2013;
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4(1)(f)
(f)debt securities issued by Member States' regional governments or local authorities other than those referred to in point (d);
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4(1)(g)
(g)debt securities issued by Member States' public sector entities other than those referred to in point (e);
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4(1)(h)
(h)debt securities issued by multilateral development banks listed in Article 117(2) of Regulation (EU) No 575/2013;
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4(1)(i)
(i)debt securities issued by the international organisations listed in Article 118 of Regulation (EU) No 575/2013;
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4(1)(j)
(j)debt securities issued by third countries' governments or central banks;
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4(1)(k)
(k)debt securities issued by third countries' regional governments or local authorities that meet the requirements of points (d) and (e);
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4(1)(l)
(l)debt securities issued by third countries' regional governments or local authorities other than those referred to in points (d) and (e);
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4(1)(m)
(m)debt securities issued by credit institutions or investment firms including bonds referred to in Article 52(4) of Directive 2009/65/EC of the European Parliament and of the Council;
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4(1)(n)
(n)corporate bonds;
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4(1)(o)
(o)the most senior tranche of a securitisation, as defined in Article 4(61) of Regulation (EU) No 575/2013, that is not a re-securitisation as defined in Article 4(63) of that Regulation;
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4(1)(p)
(p)convertible bonds provided that they can be converted only into equities which are included in an index specified pursuant to point (a) of Article 197 (8) of Regulation (EU) No 575/2013;
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4(1)(q)
(q)equities included in an index specified pursuant to point (a) of Article 197(8) of Regulation (EU) No 575/2013;
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4(1)(r)
(r)shares or units in undertakings for collective investments in transferable securities (UCITS), provided that the conditions set out in Article 5 are met.
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4(2)

2.A counterparty shall only collect collateral from the asset classes referred to in points (f), (g) and (k) to (r) of paragraph 1 where all the following conditions apply:

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4(2)(a)
(a)the assets are not issued by the posting counterparty;
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4(2)(b)
(b)the assets are not issued by entities which are part of the group to which the posting counterparty belongs;
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4(2)(c)
(c)the assets are not otherwise subject to any significant wrong way risk, as defined in points (a) and (b) of paragraph 1 of Article 291 of Regulation (EU) No 575/2013.
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