The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have published a joint report on the functioning of the Capital Requirements Regulation (CRR) with the European Market Infrastructure Regulation (EMIR).

The report concludes that the EBA and ESMA recommend that the treatment of CRR capital requirements for exposure already covered by specific financial resources provided by the EMIR requirements should be explicitly clarified.

The EBA and ESMA invite the European Commission to clarify that:

  • points (a) to (d) and point (f) of article 92(3) of the CRR should not be applicable to the credit risk, CCR and market risk for exposures that are already covered by specific financial resources as referred to in articles 41 to 44 of the EMIR; and
  • articles 300 to 309 of the CRR should not be applicable to the exposures to central counterparties (CCPs) with which an interoperability arrangement has been established in compliance with articles 51 to 54 of the EMIR.

ESMA and the EBA also recommend that the wording of article 305 should be clarified in order to allow a consistent application of the EMIR and CRR requirements related to clients’ account, as well as to clarify the requirements around the production of legal opinion, and to avoid excessive and unnecessary capital requirements for clients’ exposures to CCPs.

View EBA and ESMA report on interaction of CRR with EMIR, 18 January 2017