21 May 2015

ESMA published its opinion on the composition of the CCP Colleges

The opinion clarifies that where the ECB has taken over the direct prudential supervision of any of the clearing members of the CCP that are established in the three Member States with the largest contributions to the default fund of the CCP, it should join the college pursuant to Article 18(2)(c) of EMIR.

The opinion states that: “Where the ECB has taken over the direct prudential supervision of any of the clearing members of the CCP that are established in the three Member States with the largest contributions to the default fund of the CCP, it should join the college under to Article 18(2)(c). Where, following the taking over by the ECB of the direct prudential supervision, a national competent authority which is currently a member of the college pursuant to Article 18(2)(c) of EMIR maintains direct prudential supervisory responsibility or any other supervisory responsibility on some of the clearing members established in the three Member States with the largest contributions to the default fund of the CCP, such authority should continue to be a member of the college under to Article 18(2)(c).

Where, following the taking over by the ECB of the direct prudential supervision, a national competent authority which is currently a member of the college pursuant to Article 18(2)(c) of EMIR has no supervisory responsibility on any of the clearing members established in the three Member States with the largest contributions to the default fund of the CCP, such authority has no longer the right to participate in the college under Article 18(2)(c) of EMIR.

When the ECB becomes a CCP College member pursuant article 18(2)(c) of EMIR, it has one vote irrespective of whether the national competent authorities which are currently members of the college pursuant to Article 18(2)(c) continue to be a member of the college. Where the ECB is also appointed, in accordance with Article 3(3) of Commission Delegated Regulation No 876/213, as the single representative of the Eurosystem as central bank of the issue in a CCP college under Article 18(2)(h) of EMIR, the ECB should have one single vote. The ECB may nominate an additional participant who shall have no voting right.

Where in the same CCP college the ECB becomes a college member pursuant Article 18(2)(c) of EMIR and a National Central Bank is appointed, in accordance with Article 3(3) of Commission Delegated Regulation No 876/213, as the single representative of the Eurosystem as central bank of the issue under Article 18(2)(h) of EMIR, that National Central Bank cannot cast a separate vote under Article 18(2)(h) of EMIR.”

Full press release

Full opinion

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