Germany

Germany to implement EU Financial Collateral Directive

Sven Brandt, Norton Rose Frankfurt, sven.brandt@nortonrose.com

The EU Financial Collateral Directive

On 6 June 2002, the European Parliament and the Council of the European Union adopted Directive 2002/47/EC on Financial Collateral Arrangements (the Directive). The Directive seeks to establish a Community-wide regulation on financial collateral, such as cash deposits and securities. Securities, in particular, serve as collateral in cross-border financial business to mitigate counterparty risk in securities lending and repurchase transactions.