On 9 October 2010, the ECB published Guideline ECB/2010/131 which amends various provisions of Guideline ECB/2000/7 on Monetary Policy Instruments and Procedures of the Eurosystem.

Notably, the ECB has further tightened certain of the eligibility criteria for asset backed securities ("ABS") to be used as collateral in Eurosystem operations. Previously, the ECB required, inter alios, that the cash flow generating assets backing ABS be acquired by the issuer in a manner which the Eurosystem considers to be a "true sale" and the acquisition of such assets be governed by the law of an EU Member State.

Under Guideline ECB/2010/13, the ECB now requires that the cash flow generating assets backing the ABS must also meet several new and in certain cases, slightly revised requirements which are summarised below. The newly enacted amendments relating to ABS included in Guideline ECB/2010/13 were effective as of 10 October 2010. However, as described in more detail below, grandfathering provisions exist in respect of certain of these provisions.

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