On 12 July 2021, the European Securities and Markets Authority (ESMA) issued seven public consultation papers intended to gather feedback on how to implement its central counterparty (CCP) recovery mandates.
The seven consultation papers contain, among others, proposals for draft regulatory technical standards (RTS) on the methodology for calculation and maintenance of the additional amount of pre-funded dedicated own resources, guidelines on the consistent application of the triggers for the use of early intervention measures as well as guidelines on CCP recovery plan indicators and scenarios.
The consultation papers are:
- Draft guidelines on the consistent application of the triggers for the use of early intervention measures (Article 18(8) of Regulation (EU) 2021/23 on a framework for the recovery and resolution of central counterparties (CCPRRR).
- Draft guidelines further specifying the circumstances for temporary restrictions in the case of a significant non-default event in accordance with Article 45a of the European Market Infrastructure Regulation.
- Draft RTS further specifying the factors that shall be considered by the Member State competent authority and the supervisory college when assessing the CCP recovery plan (Article 10(12) of the CCPRRR).
- Draft guidelines on CCP recovery plan indicators (Article 9(5) of the CCPRRR).
- Draft Guidelines on CCP recovery plan scenarios (Article 9(12) of the CCPRRR).
- Draft RTS specifying the conditions for recompense (Article 20(2) of the CCPRRR) .
- Draft RTS on the methodology for calculation and maintenance of the additional amount of pre-funded dedicated own resources (Article 9(15) of the CCPRRR).
The closing date for responding to the consultation papers is 20 September 2021.
ESMA will organise an open hearing on the consultation papers on 14 September 2021 (registrations will open in August).
ESMA will consider the responses to the consultation papers with a view to publishing the final reports by Q4 2021/Q1 2022.