On 14 October 2022, the European Securities and Markets Authority (ESMA) published a final report on emergency measures on collateral requirements.

Previously, the European Commission asked ESMA to consider whether the applicable Level 2 provisions, in particular Commission Delegated Regulation (EU) 153/2013, supplementing the European Market Infrastructure Regulation (EMIR) with regards to requirements for central counterparties (CCPs), should be temporarily adapted to alleviate some of the burden faced by non-financial counterparties (NFCs), while keeping the overarching goal of EMIR of preserving financial stability.

ESMA responded to the Commission’s letter by outlining proposals intended to smoothen the functioning of the EU’s financial and energy markets and alleviate the liquidity pressure on NFCs active on gas and electricity regulated markets cleared in EU-based CCPs.

The final report follows up on ESMA’s response by containing draft regulatory technical standards amending Delegated Regulation 153/2013, to temporarily expand for 12 months the pool of eligible collateral to uncollateralised bank guarantees for NFCs acting as clearing members and to public guarantees for all types of counterparties

The final report will be sent to the Commission for endorsement and will then be subject to a scrutiny procedure by the European Parliament and the Council.