The European Securities and Markets Authority (ESMA) has published its final report on the review of Article 26 of Delegated Regulation 153/2013 which contains regulatory technical standards (RTS) supplementing the European Markets Infrastructure Regulation that relate to central counterparties’ (CCPs) client accounts. The report summarises the answers received following the publication of the consultation paper and it provides the explanations on whether and how the concerns expressed by stakeholders have been reflected in the final draft RTS. Following the submission of the amended draft RTS to the European Commission, it has three months to decide whether to endorse ESMA’s draft RTS.
The final report notes that ESMA received strong support on the consultation proposal to introduce the possibility for EU CCPs to margin on a one day gross basis for clients’ accounts. The responses to the consultation confirm that a one day gross account structure provides a sufficient level of protection to the CCPs and to the clients.