in force 2024-07-09 INSERTED+865 −0§
Amended by Regulation (EU) 2024/1623 32024R1623
applies from: unknown (an inserted provision states its own application date only in prose)
This is a new article requiring EBA to report to the Commission by 10 July 2026 on the impact of the new securities financing transactions framework on own funds requirements, with particular attention to effects on sovereign debt markets in terms of market making capacity and cost.
The article also directs EBA to assess whether risk weights in the standardised approach should be recalibrated in light of risks tied to short-term maturities, specifically residual maturities below one year, and provides that the Commission shall, where appropriate, submit a legislative proposal to the European Parliament and Council by 31 December 2027 based on that report.
Cited: Art. 506f, v2
text before / after
inserted text (02013R0575-20240709)
Article 506f Prudential treatment of securities financing transactions By 10 July 2026, EBA shall report to the Commission on the impact of the new framework for securities financing transactions in terms of own funds requirements attributed to the corresponding securities financing transactions which are by nature very short-term activities, with a particular focus on its possible impact on sovereign debt markets in terms of market making capacity and cost. EBA shall assess whether a recalibration of the associated risk weights in the standardised approach is appropriate, given the associated risks with respect to short-term maturities, specifically for residual maturities below one year. On the basis of that report, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2027.