US dollar liquidity-providing operations from 1st July 2020
ECB and other major central banks to reduce frequency of 7-day US dollar operations from daily to three times per week, operations with 84-day maturity continue to be offered weekly
New frequency effective from 1 July 2020, to remain in place for as long as appropriate to support smooth functioning of US dollar funding markets
ECB and other major central banks stand ready to re-adjust provision of US dollar liquidity as warranted by market conditions
In view of the improvements in US dollar funding conditions and the low demand at recent 7-day maturity US dollar liquidity-providing operations, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank, in consultation with the Federal Reserve, have jointly decided to reduce the frequency of their 7-day operations from daily to three times per week. This operational change will be effective as of 1 July 2020. At the same time, these central banks will continue to hold weekly operations with an 84-day maturity.
These central banks stand ready to re-adjust the provision of US dollar liquidity as warranted by market conditions. The swap lines among these central banks are available standing facilities and serve as an important liquidity backstop to ease strains in global funding markets, thereby helping to mitigate the effects of such strains on the supply of credit to households and businesses, both domestically and abroad.
ECB and Hrvatska narodna banka set up swap line to provide euro liquidity
– ECB and Hrvatska narodna banka set up new swap line
– Swap line to remain in place until end-2020, or as long as needed
– Size of swap line set at €2 billion
The European Central Bank (ECB) and Hrvatska narodna banka (Croatian National Bank) have agreed to set up a precautionary currency agreement (swap line) to provide euro liquidity to Croatian financial institutions in order to address possible market dysfunction.
Under the new swap line, Hrvatska narodna banka will be able borrow up to €2 billion from the ECB in exchange for Croatian kuna. The maximum maturity for each drawing will be three months. The swap line will remain in place until 31 December 2020, unless it is extended.
Croatia is preparing for participation in the exchange rate mechanism (ERM II), which is a prerequisite for a Member State to join the euro area.
SCOR renews its liquidity agreement with Exane
French reinsurer SCOR SE entered into a new liquidity contract with Exane, following changes in the regulations relating to liquidity agreements.
The move is in line with the French markets regulator Autorité des marchés financiers’ (AMF’s) decision 2018-01 of July 2, 2018, regarding establishing liquidity agreements on equity shares as an accepted market practice.
The new contract, which takes retroactive effect from January 1, 2019, will be in place for 12 months and is renewable. It replaces the existing liquidity contract that began on July 25, 2005 with Exane.
The contract relates to the company’s shares listed on the Euronext Paris regulated market.
As of June 28, 2019, after the close of the stock market, the resources allocated to the liquidity account were €14.37 million and 104,127 shares.
On December 31, 2018, the resources allocated to the liquidity account amounted to €13.79 million and 120,728 shares.
It is further specified that the situations or conditions leading to the suspension of the contract, in addition to those referred to in Article 5 of the AMF Decision, are as follows:
– In the event of a request in that respect of the Company for a period determined by the Company;- In the event of holding a number of securities SCOR SE equal to the maximum number decided by the General Meeting of the Company, taking into account in particular the Shares already held by the Company in accordance with Article L. 225-210 of the French Commercial Code;- In the event that the securities SCOR SE is listed outside the intervention thresholds authorized by the General Meeting of the Company; or- In the event of expiry or suspension of the authorization to repurchase Shares by the General Meeting of the Company.
The contract may also be terminated:- by the Company, at any time without notice, and- by Exane, with one month’s notice.