The European Securities and Markets Authority (ESMA) has published its final report containing guidelines on central counterparty (CCP) conflict of interest management. The final report follows a consultation paper that ESMA issued in June 2017.
The guidelines aim at providing further clarification of the requirements regarding the management of conflicts of interest by CCPs as set out in Article 33 of the European Market Infrastructure Regulation (EMIR) and Articles 3, 5, 6 and 7 of Commission Delegated Regulation (EU) No. 153/2013 of 19 December 2012 supplementing EMIR with regard to regulatory technical standards on requirements for CCPs.
The guidelines should help bring more homogeneity firstly on the concept of conflicts of interest and what should be the scope of CCP policies regarding conflicts of interest, secondly, on the organisational arrangements for CCPs to avoid or mitigate conflicts of interests including the specific situation where the CCP is part of a group and finally, on procedures the CCP should implement to address conflicts of interest.
The guidelines will be translated into the official languages of the EU and published on ESMA’s website. Within two months of the publication of the translations, Member State competent authorities will have to confirm whether or not they intend to comply with the guidelines.
View ESMA issues conflict of interest guidelines for CCPs, 7 February 2018