On 17 December 2024, the European Securities and Markets Authority (ESMA) issued a Supervisory Briefing on central counterparties (CCPs) ongoing monitoring of operational capacity of clearing members under Article 37(2) of the European Market Infrastructure Regulation (EMIR).

The Supervisory Briefing is addressed to Member State competent authorities (NCAs) designated under Article 22 of EMIR and sets out common expectations on NCAs supervisory activities regarding their supervised CCPs’ ongoing monitoring of operational capacity of clearing members under Article 37(2) EMIR. These expectations encompass four elements: a) adequate IT systems, b) access to payment systems and services; c) the resources and expertise required to use the service and d) the operational risk management and business continuity.

Next steps

The content of the Supervisory Briefing is not exhaustive and does not constitute new policy.

The content is not subject to any ‘comply or explain’ mechanism for NCAs.

NCAs are expected to comply with the expectations in a proportionate manner, taking into account the size, relevance and risks managed by each CCP, and the risks taken in relation to each clearing member.