Harmonisation initiatives Single Collateral Management Rulebook for Europe (SCoRE)
In early December 2022, due to the postponement of the TARGET2/T2S consolidation, it was decided by the Governing Council of the EZB to postpone the planned start of operations to April 8, 2024. In the light of the new ECMS launch date, the market participants involved in the initiative to develop a Single Collateral Management Rulebook for Europe (SCoRE) have also expressed a wish to adjust its timeline. The ECMS and SCoRE are related, as SCoRE will also lay down harmonised collateral management processes that will be used by ECMS participants. The AMI-SeCo has agreed on the market participants request. The implementation deadline of the SCoRE Standards has been extended from November 2023 to April 8, 2024.
The Single Collateral Management Rulebook for Europe (SCoRE) was published in December 2019. It sets out the harmonised collateral management processes agreed by the Advisory Group on Market Infrastructures for Securities and Collateral (AMI-SeCo).
Thus far, the following harmonisation standards that use the ISO 20022 messaging standard have been agreed for Europe:
- Triparty standards
These establish common processes for interaction between all major European triparty service providers and their participants, including the Eurosystem. The aim is, in particular, to enhance the mobility of collateral between different triparty agents.
- Billing standards
These standards set out a single set of rules for the transmission of billing information by post-trade service providers related to custody and collateral management, including the alignment of billing frequency and costs.
- Corporate action standards
A first set of harmonised business processes have been endorsed for the treatment of corporate action events on debt instruments. Work on standards extending to other instruments, such as equities, is ongoing.
In order to implement these harmonisation standards, the national stakeholder groups (NSGs) of the markets represented on the AMI-SeCo have prepared “adaptation plans” and established a process for monitoring implementation progress. Twice annually, NSG members (consisting of CSDs, TPAs, custodians, issuers and CCPs) survey market participants on their progress in implementing each harmonisation standard. The AMI-SeCo has already published on the ECB’s website the SCoREBOARD Fifth Compliance & Progress Report on the Single Collateral Management Rulebook for Europe (SCoRE).