ESMA’s proposals include targeted changes to the existing RTS in order to better mitigate the potential procyclical effects of big steps margin changes on clearing members and clients, as well as limit the spread of liquidity stress to other parts of the financial system.
The European Securities and Markets Authority (ESMA) the EU’s financial markets regulator and supervisor, published today a Final Report reviewing the RTS to further harmonise CCP policies and procedures for selecting, assessing and reviewing anti-procyclicality (APC) margin measures.
The revised RTS aim to harmonise the policies and procedures for selecting and reviewing the anti-procyclicality margin measures and to provide more granularity on design and use of specific APC tools, while ensuring sufficient flexibility for the CCPs to adapt to given market situations.
Next steps
The Final Report is submitted to the European Commission for endorsement within three months in the form of an amending Delegated Regulation. Following their adoption, the RTS would then be subject to the non-objection of the European Parliament and of the Council.
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