The Eurosystem may establish various risk control measures. It currently uses haircuts and valuation markdowns, variation margins and concentration limits. The main risk control measure applied by the Eurosystem are haircuts, which vary depending on the asset type, issuer group, residual maturity, credit quality and interest rate.
The ECB publishes a list of the haircut categories applied to collateral. Haircuts are revised regularly and are included in Guideline ECB/2015/35.