The seven Final Reports cover proposals for Regulatory Technical Standards (RTSs) on the methodology for calculation and maintenance of the additional amount of pre-funded dedicated own resources, on the factors to be taken into account.. the recompense mechanism for non-defaulting clearing members.
The
European Securities and Markets Authority (ESMA), the EU’s securities
markets regulator, today published its Final Reports on the central
counterparties (CCPs) recovery regime, as mandated under the CCP
Recovery and Resolution Regulation (CCPRRR).
The seven Final Reports cover proposals for
Regulatory Technical Standards (RTSs) on the methodology for calculation
and maintenance of the additional amount of pre-funded dedicated own
resources, on the factors to be taken into account by the competent
authority and the supervisory college when assessing the recovery plan
and on the recompense mechanism for non-defaulting clearing members. It
also covers Guidelines on the consistent application of the triggers for
the use of Early Intervention Measures, on the CCP’s recovery plan
indicators and scenarios and on the restrictions of dividends in case of
a significant non-default event.
ESMA’s RTSs and Guidelines provide further specifications of the
CCPRRR, such as, for example, the Guidelines covering scenarios and
indicators provide the building blocks aimed to guide the CCPs in
establishing the relevant suitable scenarios and indicators. The
overarching goal of this package is to further assist the preparedness
of the market and to ensure CCPs can restore their financial soundness,
without any extraordinary public financial support, and allow them to
continue to provide critical functions following a significant
deterioration of their financial situation or in a situation of
financial distress.
The completion of these RTSs and Guidelines is ESMA’s latest output
in a series of publications covering the mandates under CCPRRR. ESMA has
also recently finalised its consultation on the first set of mandates
in relation to the resolution regime. The consultation papers in
relation to the resolution related mandates can be found here.
Next steps
ESMA has submitted the Final Reports concerning the RTSs to the
European Commission which now has three months to decide whether to
endorse the proposed standards under a Delegated Regulation.
ESMA has submitted the Guidelines for translation and once translated
into all official languages of the EU, ESMA will focus on the
consistent application of the Guidelines by national competent
authorities and CCPs where applicable.
ESMA
© ESMA
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