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09 November 2015

ECB: Increase in PSPP issue share limit enlarges purchasable universe


Eurosystem published an amended legal act to reflect the decision of the Governing Council of 3 September 2015 to increase the PSPP issue share limit, making the higher issue limit effective.

The ECB publishes the amended legal act on a secondary markets public sector asset purchase programme (ECB/2015/10). The amendment follows the Governing Council decision of 3 September 2015 to increase the PSPP issue share limit from 25% to 33% per international securities identification number (ISIN), subject to verification on a case-by-case basis that a holding of 33% per ISIN would not lead the Eurosystem central banks to reach blocking minority holdings in relation to collective action clauses.

As of 10 November 2015, the PSPP issue share limit will be set at 33% per ISIN. This higher issue limit allows for a significant increase in the purchasable amount both for outstanding and for newly issued PSPP eligible securities. It facilitates the full and smooth implementation of the PSPP, while at the same time allowing the smooth operation of markets in eligible marketable debt securities and avoiding that the Eurosystem owns effective blocking minority holdings in relation to collective action clauses.

Full press release



© ECB - European Central Bank


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