On 13 June 2017, the European Commission (Commission) put forward a proposal for a draft Regulation amending Regulation (EU) No.1095/2010 establishing a European Supervisory Authority (ESA) (European Securities and Markets Authority (ESMA)) and amending the European Market Infrastructure Regulation (EMIR) (the Proposed Regulation). The Proposed Regulation introduces significant changes to recognition and on-going supervision of third country central counterparties (CCPs) in an attempt to address perceived shortcomings in existing supervisory arrangements.
A key part of the Proposed Regulation is the establishment of a new body within the European Securities and Markets Authority, the CCP Executive Session, which will be responsible for handling tasks related to CCPs in general and supervising EU and third country CCPs in particular. The Proposed Regulation also seeks to enhance ESMA’s role in colleges, by providing that permanent members of the CCP Executive Session shall participate in college meetings for CCPs under EMIR, with the Head of the CCP Executive Session chairing and managing those meetings.
The Commission has now adopted an amendment to the Proposed Regulation that allocates an additional task to the CCP Executive Session. Specifically the following is to be inserted into paragraph 1 of Article 44b: “taking decisions and actions on CCP matters with respect to Articles 17, 19, 29, 29a and 30 of this Regulation;”.