On 19 September 2023, the Financial Stability Board (FSB) published a consultation report on financial resources and tools for central counterparty (CCP) resolution. In the consultation report the FSB sets out a proposal for a toolbox approach as a global standard for CCP financial resources and tools for resolution. In a toolbox approach, resolution authorities … Continue Reading
On 23 August 2023, the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) published a report and accompanying cover note on current central counterparty (CCP) practices to address non-default losses (NDLs). The purpose of the report is to present current practices among CCPs in addressing … Continue Reading
On 11 August 2023, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2023/1626 of 19 April 2023 on amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by central counterparties (CCPs) for settlement. … Continue Reading
On 9 August 2023, there was published in the Official Journal of the European Union (OJ) the following delegated regulations on CCP recovery and resolution: These Delegated Regulations enter into force on the twentieth day following their publication in the OJ.… Continue Reading
On 19 July 2023, the European Securities and Markets Authority (ESMA) issued a final report which contains draft targeted changes to the regulatory technical standards (RTS) on requirements for central counterparties (CCPs) under Commission Delegated Regulation (EU) No 153/2013. The final report follows a consultation paper that ESMA published in January 2022 and a public … Continue Reading
On 6 July 2023, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on initial margin model validation (IMMV) under Article 11(15)(aa) of the European Market Infrastructure Regulation (EMIR). In order to enhance compliance with the margin framework for non-cleared over-the-counter derivatives laid down by the Basel Committee on Banking Supervision (BCBS) … Continue Reading
On 23 June 2023, the European Securities and Markets Authority (ESMA) published two final reports containing guidelines on the Regulation on a framework for the recovery and resolution of central counterparties (CCPRRR). The final reports follow the publication of Commission Delegated Regulations 2023/1193 on the content of resolution plans and 2023/1192 on resolution colleges. The … Continue Reading
On 22 June 2023, the European Central Bank (ECB) published a speech delivered by Fabio Panetta, member of the executive board of the ECB, given at the fifth joint Deutsche Bundesbank, ECB and Federal Reserve Bank of Chicago conference on central counterparty (CCP) risk management. In his speech, Mr Panetta highlights the following three areas … Continue Reading
On 21 June 2023, there was published in the Official Journal of the European Union (OJ): Both Delegated Regulations enter into force on the twentieth day following that of their publication in the OJ.… Continue Reading
On 14 June 2023, the European Parliament Committee on Economic and Monetary Affairs (ECON) published a draft report on the proposal for a Regulation of the European Parliament and of the Council amending Regulations (EU) No 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country central counterparties and … Continue Reading
On 12 June 2023, the European Parliament Committee on Economic and Monetary Affairs (ECON) published a draft report on the proposal for a Directive of the European Parliament and of the Council amending Directives 2009/65/EU, 2013/36/EU and (EU) 2019/2034 as regards the treatment of concentration risk towards central counterparties and the counterparty risk on centrally … Continue Reading
On 2 June 2023, the European Securities and Markets Authority (ESMA) published guidelines on the methodology to be used by the resolution authority for determining the valuation of contracts prior to their termination as referred to in Article 29(1) of the Regulation on a framework for the recovery and resolution of central counterparties. The guidelines … Continue Reading
On 2 June 2023, the European Securities and Markets Authority (ESMA) published guidelines further specifying the circumstances for temporary restrictions in the case of a significant non-default event in accordance with Article 45a of the European Market Infrastructure Regulation (EMIR). Article 45a of EMIR mandates ESMA to draft guidelines further specifying the circumstances in which … Continue Reading
On 1 June 2023, the European Securities and Markets Authority (ESMA) published guidelines on the application of the circumstances under which a central counterparty (CCP) is deemed to be failing or likely to fail. The guidelines apply to Member State competent authorities and are based on Article 22(6) of the Regulation on a framework for … Continue Reading
On 1 June 2023, the European Securities and Markets Authority (ESMA) published guidelines on the consistent application of the triggers for the use of early intervention measures based on Article 18(8) of the Regulation on a framework for the recovery and resolution of central counterparties (CCPRRR). The guidelines apply to Member State competent authorities designated … Continue Reading
On 24 May 2023, the Basel Committee on Banking Supervision (BCBS), the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a joint report on margin dynamics in centrally cleared commodities markets in 2022. The report examines margin calls in centrally cleared commodities markets … Continue Reading
On 11 May 2023, there was published in the Official Journal of the European Union (OJ), Corrigendum to Commission Implementing Regulation (EU) 2022/1860 of 10 June 2022 laying down implementing technical standards for the application of Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to the standards, formats, frequency … Continue Reading
On 3 May 2023, the European Commission published the following: These Delegated Regulations shall come into force on the twentieth day following that of their publication in the Official Journal of the European Union.… Continue Reading
On 2 May 2023, the European Securities and Markets Authority (ESMA) announced that it had recognised four new third country central counterparties (TC-CCPs), under Article 25 of the European Market Infrastructure Regulation (EMIR), bringing the total number of TC-CCPs recognised by ESMA to 39. The newly recognised TC-CCPs are: The recognition of these four TC-CCPs … Continue Reading
On 21 April 2023, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2023/840 of 25 November 2022 supplementing Regulation (EU) 2021/23 of the European Parliament and of the Council with regard to regulatory technical standards specifying the methodology for calculation and maintenance of the additional amount of pre-funded … Continue Reading
On 19 April 2023, the European Commission published Commission Delegated Regulation (EU) of 19.4.2023 on amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement. The Commission Delegated Regulation removes the separate process established in Article … Continue Reading
Introduction UK and EU pension funds are currently exempt from the clearing obligation under the European Market Infrastructure Regulation (EMIR) as a result of the transitional provisions in Article 89 EMIR, which provide that the clearing obligation does not apply to over-the-counter (OTC) derivative contracts that are objectively measurable as reducing investment risks directly relating … Continue Reading
On 31 March 2023, the European Securities and Markets Authority (ESMA) published a public statement on the derivative trading obligation (DTO) in the context of the migration of credit default swap (CDS) contracts out of ICE Clear Europe. The objective of this statement is to support the orderly migration of positions from ICE Clear Europe … Continue Reading
On 29 March 2023, the European Securities and Markets Authority (ESMA) published a Final Report on draft Regulatory Technical Standards (RTS) on business reorganisation plans in accordance with Articles 37(4) and 38(4) of Regulation (EU) 2021/23 on a framework for the recovery and resolution of central counterparties (CCPRRR). With respect to central counterparties’ (CCPs) business … Continue Reading
