Tue. Jun 6th, 2023

Monday 12 July 2021

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.

Source: ESMA launches public consultations on CCP recovery regime

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