Brussels, 18/11/2015 (Agence Europe) - On Monday 16 November, the Council of the EU definitively adopted the regulation stepping up the transparency of financing operations on securities carried out in the shadow banking sector (see EUROPE 11421).
These operations allow players to use the shares or bonds they own to guarantee means of financing for their activities. They consist of temporarily giving assets in security in exchange for financing (e.g. loan/borrowing of securities, repurchase, etc).
The operations in question will be notified and compiled in central registers to which the regulators will have access. It will be easier for the regulators to identify risks related to these transactions and links between the regulated markets and the shadow banking sector. Additionally, investment funds will record their financing operations on securities in their financial statements. Lastly, minimum transparency conditions are to be observed.
The future regulation will not cover central banks, public agencies for the management of the sovereign debt of eurozone countries or the Bank of International Settlements. (Original version in French by Mathieu Bion)