In general, there are requirements regarding the type of asset, stock market listing, credit rating and arrangements for account keeping.
The asset must not have been issued by or guaranteed by the actual counterparty or by a company that has close links with the counterparty.
When valuating an asset for use as collateral, a valuation haircut is made. This haircut takes into account the remaining duration of the asset, its liquidity and the currency. An extra haircut may be decided on for certain assets.