# Commission Delegated Regulation (EU) 2017/390 of 11 November 2016 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on certain prudential requirements for central securities depositories and designated credit institutions offering banking-type ancillary services (Text with EEA relevance), Article 11: Other collateral

Extent: E+W+S+N.I.

1. Other types of collateral to be used by a CSD-banking service provider shall consist of financial instruments that meet all of the following conditions:
(a) they are freely transferable without any legal constraint or third party claims that impair their liquidation;
(b) they are eligible at a central bank of the Union, where the CSD-banking service provider has access to regular, non-occasional credit (‘routine credit’) at that central bank;
(c) they are denominated in a currency the risk of which the CSD-banking service provider is able to manage;
(d) the CSD-banking service provider has a prearranged funding arrangement with the type of creditworthy financial institution referred to in point (e) of Article 59(4) of Regulation (EU) No 909/2014 and specified in Article 38 of this Regulation, which provides for the conversion of these instruments into cash on a same-day basis.
2. For the purposes of (c) of Article 59(3) of Regulation (EU) No 909/2014, other type of collateral to be used by a CSD-banking service provider shall be financial instruments that meet the following conditions:
(a) they are freely transferable without any legal constraint or third party claims that impair their liquidation;
(b) they are denominated in a currency the risk of which the CSD-banking service provider is able to manage;
(c) the CSD-banking service provider has both of the following:
(i) a prearranged funding arrangement in accordance with point (e) of Article 59(4) of Regulation (EU) No 909/2014 and specified in Article 38 of this Regulation, so that these instruments can be liquidated within five business days;
(ii) qualifying liquid resources in accordance with Article 34 to a sufficient amount to ensure that it covers the time gap for liquidating such collateral in case of default of the participant.

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Source: https://www.legislation.gov.uk/eur/2017/390/article/11 (the official version)
Page: https://openlegislation.uk/eu-regulation-2017-390/article-11
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.