Self-Collateralisation is the German market’s flexible solution to generate central bank liquidity for settlement at CBF by pledging eligible purchased securities to the Bundesbank.

The service is provided by the Bundesbank supplying intraday liquidity against the pledged purchased securities, with CBF supplying the infrastructure to efficiently process the pledging and release of securities.

The automated service gives customers a high degree of relief from operational burdens, providing automatic or case-by-case flagging of eligible purchases, optimising the self-collateralisation so that only the required value is pledged, and offering controlled automated release of pledged securities until late intraday. The customer benefits include: