ESMA is seeking input from stakeholders on a potential review of its Regulatory Technical Standards (RTS) with the aim of harmonising the existing APC margin measures for CCPs as well as specific anti-procyclicality tools.
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today launches a consultation paper
to review the European Market Infrastructure Regulation’s (EMIR)
requirements on anti-procyclicality (APC) margin measures for central
counterparties (CCPs).
Nicoletta Giusto, Independent Member of the CCP Supervisory Committee, said:
“The turmoil in global markets following the onset of the
COVID-19 pandemic in 2020 has been a live test of the operational
resilience of CCPs and the adequacy of their regulatory and supervisory
framework. This has prompted us to re-examine our anti-procyclicality
tools.
‘’Our Consultation Paper sets out proposed amendments to the EMIR RTS
that aim to further harmonise CCP policies on margin changes as well as
the use of anti-procyclicality margin tools across the EU. The
proposals result from in-depth research and stakeholder engagement and
we believe that, if implemented, they will strengthen the resilience of
the EU financial system as a whole.”
While ESMA’s data show that EU CCPs have overall performed well
during the early stages of the COVID-19 crisis, the surge in initial
margin has raised questions as to whether some of these increases acted
in a procyclical manner, potentially causing, or even, amplifying
liquidity stress in other parts of the financial system.
The deadline for responses to the consultation paper is 31 March
2022. Stakeholders will have the opportunity to attend to a public
hearing organised by ESMA on 17 March 2022.
ESMA
© ESMA
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