The European Securities and Markets Authority (ESMA) has published an opinion on the European Commission’s legislative proposal for a Regulation on the recovery and resolution of central counterparties (CCPs).

In the opinion, ESMA welcomes the Commission’s proposed Regulation and appreciates the key role that has been assigned to it. In particular the draft Regulation tasks ESMA to:

  • develop 5 regulatory technical standards and 2 guidelines;
  • participate in resolution colleges (together with the European Banking Authority);
  • exercise binding mediation and make decisions when the supervisory college or the resolution college does not reach a joint opinion on certain issues;
  • receive certain notifications and publish on its website the list of resolution authorities and any resolution actions; and
  • provide, upon the resolution of a CCP, an opinion on the suspension of the clearing obligation (and further extension of that suspension).

In the opinion ESMA expresses its view on a few issues related to the impact of the draft Regulation on its organisation, resources and role and, more generally, to some arrangements related to CCP recovery and resolution (composition of resolution colleges, ESMA mediation role in colleges, provisions on recovery plans and the waiver of European Markets Infrastructure Regulation requirements for a “Bridge CCP”).

View ESMA opinion on proposed Regulation on CCP recovery and resolution, 5 April 2017