Esma set to backtrack on mandatory asset segregation

Maintaining the status quo would avoid disrupting securities financing and collateral reuse

icas-ringfencing-retailers-deposits
No defence: a global custodian says Esma has indicated it won’t back mandatory segregation

The European Securities and Markets Authority (Esma) is expected to back down over plans that first surfaced two years ago, which would have forced a level of asset segregation in the custody chain, prohibiting the healthy functioning of tri-party repo and securities financing.

“The general view of the industry is we are in a much better place and Esma are moving away from strict segregation,” says one global custodian.

Esma published a second consultation on asset segregation under the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here