The identity of the consideration for the pension contract; 2. NCBs submit their applications for prior authorisation to the ECB, where possible, before the date scheduled for the closing of pension transactions. Each application must contain at least the following information: 5. If the Governing Council considers that a pension contract is not in line with the objectives of paragraph 4, it may either require that the pension contract subject to approval or: the Fed`s existing swap lines to 14 central banks have been widely used and peaked at more than $440 billion in early May (see here). The ECB has not published data on the use of its swap lines or bilateral pension agreements. Swap lines have been an effective tool to meet the demand for widely used currencies, particularly during the Global Financial Crisis (GFC). The Fed`s swap lines were widely used by the ECB, the Bank of Japan and other major central banks during the CCM (see here). For more information on the use of swap lines now and during the GFC, check out the YPFS blog below. A pension transaction (repo) is a two-legged operation akin to a secured loan. A cash borrower sells securities (the collateral) to the lender and agrees to buy them back at a predetermined price2 Cash borrowers are asset managers, pension funds and insurance companies. Money lenders and corporate treasurers are typical lenders of cash. Deposits are provided by large broker traders, who are also important pension users to finance market-creating stocks, to obtain short-term financing or to invest cash.

Renuse operations can be either bilateral or processed through a central counterparty.3, a coordinated approach of the Eurosystem with regard to the implementation of pension operations with the national central banks of the Eurosystem; The duration of the repurchase transaction and, if it is already available, the expiry of the specific pension transactions to be carried out; a “buy-back contract” agreement whereby a NCB and a non-eurozone national central bank agree to carry out one or more specific pension transactions. In the case of a repurchase transaction, a party agrees to purchase euro-denominated securities from the other party in exchange for payment of a price agreed in euros on the trading day, or to agree to sell (or buy) equivalent securities to the other party in exchange for payment of another price agreed in euros on the due date; Pension transactions concluded by the NCBs with the national central banks of the Eurosystem can have an impact on the liquidity of the euro and, therefore, on the single monetary policy when activated. Therefore, in order to better preserve the integrity of single monetary policy, the ECB Governing Council decided on 22 October 2009 that its prior approval should be necessary for certain liquidity agreements concluded by the NCBs with the national central banks of the Eurosystem. (1) Before the NCO pension transactions with national central banks. Eurosystem, they submit these agreements to the ECB for prior approval by the Governing Council. Eurep can also be seen as a complement to its US-based counterpart: the Federal Reserve`s temporary mechanism for the pension operations of foreign and international monetary authorities or the FIMA rean force. The FIMA-Repo mechanism created on 31 March reflects the EUREP liquidity backstop function.