The Capital Requirements Regulation requires the European Securities and Markets Authority (ESMA) to define the concepts of “main indices” and “recognised exchanges”. These concepts are important as they are used inter alia in the specification of “eligible collateral” which in turn is important for the calculation of credit risk by the credit institutions and investment firms to which the CRR applies.

ESMA has now published a consultation paper which sets out a proposed rationale for both concepts and includes draft implementing technical standards (ITS) which contain a proposed list of “main indices” and “recognised exchanges”.

The deadline for comments on the consultation paper is 1 November 2014. ESMA will consider the feedback to the consultation paper when finalising the draft ITS which is to be submitted to the European Commission by 31 December 2014.

View ESMA consults on proposed list of main indices and recognised exchanges under the CRR, 29 September 2014