(Article 15(7) of Regulation (EU) 2017/1131)

1. Reverse repurchase agreements as referred to in Article 15(6) of Regulation (EU) 2017/1131 shall meet established market standards and their terms and conditions shall enable managers of MMFs to fully enforce their rights in case of default of the counterparty to such agreements, or their early termination and give managers of MMFs the unrestricted right to sell any assets received as collateral,

2. The assets referred to in Article 15(6) of Regulation (EU) 2017/1131 shall be subject to a haircut, that is equal to the volatility adjustment figures referred to in tables 1 and 2 of Article 224(1) of Regulation (EU) No 575/2013 for a given residual maturity, in respect of a 5-day liquidation period and the highest assessment in terms of credit quality step.

3. Where necessary, managers of MMFs shall apply an additional haircut to the one referred to in paragraph 2. To assess whether such an additional haircut is necessary, they shall take into account all of the following factors:

(a) the credit quality assessment of the counterparty to the reverse repurchase agreement;

(b) the margin period of risk, as defined in Article 272(9) of Regulation (EU) No 575/2013;

(c) the credit quality assessment of the issuer or of the asset that is used as collateral;

(d) the remaining maturity of the assets used as collateral;

(e) the volatility of the price of the assets used as collateral.