The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today launched seven public consultations to gather stakeholder feedback on how to implement its central counterparty (CCP) recovery mandates.
The seven consultation papers contain, among others,
proposals for Draft Regulatory Technical Standards (RTS) on the
methodology for calculation and maintenance of the additional amount of
pre-funded dedicated own resources, Guidelines on the consistent
application of the triggers for the use of Early Intervention Measures
as well as Guidelines on CCP recovery plan indicators and scenarios.
ESMA’s recommendations support the development of CCP recovery plans
that are aimed at safeguarding financial soundness of CCPs without the
need for public financial support in crisis situations.
Klaus Löber, Chair of the CCP Supervisory Committee, said:
“The launch of ESMA’s public consultations, on the implementation of
the CCP recovery mandates, is the first step to ensuring consistency of
EU central counterparties recovery regimes at EU level in line with the
highest international standards.”
“The proposed Regulatory Technical Standards and Guidelines
complement the new EU Regulation on recovery and resolution, and will
provide national and EU regulators with the necessary tools to support
their supervisory and financial stability objectives while ensuring
supervisory convergence across the EU.“
Harmonised CCP recovery measures will also allow central
counterparties to continue to provide critical functions in case of a
significant deterioration of their financial situation or when there is a
risk of breaching their capital and prudential requirements.
The closing date for responses is 20 September 2021. ESMA will
organise an open hearing on the consultation papers on 14 September 2021
(registrations will open in August). ESMA will consider the responses
to this consultation with a view to publishing the final reports by Q4
2021/Q1 2022.
public consultations
ESMA
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