Auto-collateralisation is a
credit
Credit (from Latin verb ''credit'', meaning "one believes") is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party immediately (thereby generating a debt) ...
operation that is or can be triggered, when a buyer does not have sufficient funds to settle a securities transaction, in order to improve its cash position for the next settlement cycle. The credit provided can be secured using securities already held by the buyer (“
collateral stocks”) or the securities that are being purchased (“collateral flows”).
See also
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T2S
TARGET2-Securities, in shorthand T2S, is the Eurosystem's platform for Security (finance), securities Settlement (finance), settlement in central bank money. T2S offers centralised delivery-versus-payment (DvP) settlement across several European se ...
External links
TARGET2-Securities page on the ECB websiteECB proposal for the T2S Project
Credit
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