Annexes to SEC(2011)950 - Executive summary of the impact assessment

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dossier SEC(2011)950 - Executive summary of the impact assessment.
document SEC(2011)950 EN
date July 20, 2011
agreement) contract, the borrower agrees to sell a security to a lender and to buy the same security from the same lender at a fixed price at some later date.

[11]             While the rationale behind a repo contract is borrowing or lending of cash, in securities financing, the purpose is to temporarily obtain a security for other purposes such as covering short positions.

[12]             An entity that interposes itself between counterparties to contracts traded within one or more financial markets, becoming the buyer to every seller and the seller to every buyer.

[13]             A choice given to competent authorities or MS on how to comply with a given provision, selecting from a range of alternatives.

[14]             A choice given to competent authorities or MS as to whether apply a given provision.

[15]             Of this figure, €37 billion (measured in Tier 1 capital) is attributable to CRD III proposal.