Collateral Directive
Description
The Collateral Directive creates an EU legal framework to enable the limiting of credit risk in financial transactions through the provision of securities and cash as collateral.
It enables financial collateral to be used more effectively across the EU by providing legal support for a number of features important to collateral use, in particular:
- Validity
- Abolition of formalities for creation of collateral
- Realisation of collateral in the event of default