The Report concludes that further work is to be done regarding the extension of the list of eligible financial instruments to certain public entities and potentially to covered bonds pending further research. ESMA will also pursue further work within the CCP Supervisory Committee to ensure a common supervisory approach regarding CCP investment practices.
ESMA was mandated to assess whether the scope of highly liquid
financial instruments with minimal market and credit risk for CCP cash
reinvestments should be extended and if such a list should include some
or all Money Market Funds (MMF) authorised under the MMFR.
The report concludes that it would be premature to allow CCP
investments in MMFs, as no category of MMFs currently meets all the
conditions that define highly liquid financial instruments. The
forthcoming review of the MMF Regulation is expected to assess possible
changes to the regulatory framework that might make EU MMF adequate for
CCP investments.
Next steps
The Report was sent to the European Commission (EC). ESMA will
consider further work to potentially amend relevant sections of the RTS
or other relevant level 3 measures.
ESMA
© ESMA
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