Tag: Clearing and settlement

FSB consults on financial resources and tools for central counterparty resolution

On 19 September 2023, the Financial Stability Board (FSB) published a consultation report on financial resources and tools for central counterparty (CCP) resolution. In the consultation report the FSB sets out a proposal for a toolbox approach as a global standard for CCP financial resources and tools for resolution. In a toolbox approach, resolution authorities … Continue Reading

Joint trade association statement on the Commission’s proposed active account requirement under EMIR 3.0

On 7 September 2023, a joint trade association comprising of the EFAMA, BFPI Ireland, EACB, FIA EPTA, Federation of the Dutch Pension Funds, Finance Denmark, Nordic Securities Association, AIMA, ICI Global, FIA and ISDA published a statement on the European Commission’s (the Commission) proposed active account requirement (AAR) under EMIR 3.0. This proposal would require … Continue Reading

CPMI and IOSCO publish report on current CCP practices to address non-default losses

On 23 August 2023, the Committee on Payments and Market Infrastructures (CPMI) and the Board of the International Organization of Securities Commissions (IOSCO) published a report and accompanying cover note on current central counterparty (CCP) practices to address non-default losses (NDLs). The purpose of the report is to present current practices among CCPs in addressing … Continue Reading

Commission Delegated Regulation amending the RTS laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement

On 11 August 2023, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2023/1626 of 19 April 2023 on amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by central counterparties (CCPs) for settlement. … Continue Reading

Published in the OJ: Delegated Regulations on CCP recovery and resolution

On 9 August 2023, there was published in the Official Journal of the European Union (OJ) the following delegated regulations on CCP recovery and resolution: These Delegated Regulations enter into force on the twentieth day following their publication in the OJ.… Continue Reading

On 3 August 2023, HM Treasury issued a post implementation review of the Financial Market Infrastructure Administration (England and Wales) Rules 2018 (the Rules). The Rules set out the detailed procedures for a financial market infrastructure (FMI) special administration regime (SAR) as introduced by Part 6 of the Financial Services (Banking Reform) Act 2013. The … Continue Reading

BoE publishes consultation paper on its approach to discretionary payments by CCPs

On 2 August 2023, the Bank of England (BoE) published a consultation paper on Ensuring continuity of critical clearing services: The BoE’s approach to discretionary payments by central counterparties (CCPs). The consultation paper sets out the BoE’s proposed approach to its power to temporarily restrict or prohibit discretionary payments to shareholders or employees of recognised … Continue Reading

BoE consults on fees regime for FMI supervision 2023/24

On 21 July 2023, the Bank of England (BoE) issued a consultation paper setting out proposals for the fee rates to meet its 2023/4 funding requirement for its financial market infrastructure (FMI) supervisory activity and the policy activity that supports it. The consultation paper also sets out the BoE’s application of special project fees for … Continue Reading

ESMA final report on the review of the RTS with respect to the procyclicality of CCP margin

On 19 July 2023, the European Securities and Markets Authority (ESMA) issued a final report which contains draft targeted changes to the regulatory technical standards (RTS) on requirements for central counterparties (CCPs) under Commission Delegated Regulation (EU) No 153/2013. The final report follows a consultation paper that ESMA published in January 2022 and a public … Continue Reading

PRA and FCA consult on changes to UK EMIR bilateral margining requirements

On 18 July 2023, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) published a consultation paper (PRA CP13/23 / FCA CP23/16) setting out proposed changes to the bilateral margining requirements under the UK version of the European Market Infrastructure Regulation (UK EMIR). Under UK EMIR, firms must exchange initial and variation margin … Continue Reading

EBA publishes final draft RTS on initial margin model validation

On 6 July 2023, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) on initial margin model validation (IMMV) under Article 11(15)(aa) of the European Market Infrastructure Regulation (EMIR). In order to enhance compliance with the margin framework for non-cleared over-the-counter derivatives laid down by the Basel Committee on Banking Supervision (BCBS) … Continue Reading

ESMA publishes guidelines on CCPRRR

On 23 June 2023, the European Securities and Markets Authority (ESMA) published two final reports containing guidelines on the Regulation on a framework for the recovery and resolution of central counterparties (CCPRRR). The final reports follow the publication of Commission Delegated Regulations 2023/1193 on the content of resolution plans and 2023/1192 on resolution colleges. The … Continue Reading

ECB speech on central clearing in turbulent times: frontiers in regulation and oversight

On 22 June 2023, the European Central Bank (ECB) published a speech delivered by Fabio Panetta, member of the executive board of the ECB, given at the fifth joint Deutsche Bundesbank, ECB and Federal Reserve Bank of Chicago conference on central counterparty (CCP) risk management. In his speech, Mr Panetta highlights the following three areas … Continue Reading

Published in the OJ: RTS supplementing the EU CCP Recovery and Resolution Regulation  

On 21 June 2023, there was published in the Official Journal of the European Union (OJ): Both Delegated Regulations enter into force on the twentieth day following that of their publication in the OJ.… Continue Reading

ECON draft report on the proposal for a Regulation amending Regulations (EU) 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country CCPs and improve the efficiency of EU clearing markets

On 14 June 2023, the European Parliament Committee on Economic and Monetary Affairs (ECON) published a draft report on the proposal for a Regulation of the European Parliament and of the Council  amending Regulations (EU) No 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country central counterparties and … Continue Reading

ECON draft report on the proposal for a Directive amending Directives 2009/65/EU, 2013/36/EU and 2019/2034 as regards the treatment of concentration risk towards CCPs and the counterparty risk on centrally cleared derivatives transactions

On 12 June 2023, the European Parliament Committee on Economic and Monetary Affairs (ECON) published a draft report on the proposal for a Directive of the European Parliament and of the Council amending Directives 2009/65/EU, 2013/36/EU and (EU) 2019/2034 as regards the treatment of concentration risk towards central counterparties and the counterparty risk on centrally … Continue Reading

The Central Counterparties (Equivalence) (India) (Reserve Bank of India) Regulations 2023

On 6 June 2023, there was published on the legislation.gov.uk website The Central Counterparties (Equivalence) (India) (Reserve Bank of India) Regulations 2023. The Regulations specify that the legal and supervisory arrangements in relation to specified central counterparties (CCPs) authorised by the Reserve Bank of India (RBI) are equivalent to the UK’s corresponding regime. The determination … Continue Reading

ESMA guidelines on the methodology to be used by the resolution authority for determining the valuation of contracts prior to their termination as referred to in Article 29(1) of CCPRRR

On 2 June 2023, the European Securities and Markets Authority (ESMA) published guidelines on the methodology to be used by the resolution authority for determining the valuation of contracts prior to their termination as referred to in Article 29(1) of the Regulation on a framework for the recovery and resolution of central counterparties. The guidelines … Continue Reading

ESMA publishes guidelines further specifying the circumstances for temporary restrictions in the case of significant non-default event in accordance with Article 45a of EMIR

On 2 June 2023, the European Securities and Markets Authority (ESMA) published 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 (EMIR). Article 45a of EMIR mandates ESMA to draft guidelines further specifying the circumstances in which … Continue Reading

ESMA guidelines on the application of the circumstances under which a CCP is deemed to be failing or likely to fail

On 1 June 2023, the European Securities and Markets Authority (ESMA) published guidelines on the application of the circumstances under which a central counterparty (CCP) is deemed to be failing or likely to fail. The guidelines apply to Member State competent authorities and are based on Article 22(6) of the Regulation on a framework for … Continue Reading

ESMA guidelines on the consistent application of the triggers for the use of early intervention measures under Article 18(8) of CCPRRR

On 1 June 2023, the European Securities and Markets Authority (ESMA) published guidelines on the consistent application of the triggers for the use of early intervention measures based on Article 18(8) of the Regulation on a framework for the recovery and resolution of central counterparties (CCPRRR). The guidelines apply to Member State competent authorities designated … Continue Reading

HM Treasury publishes amendments to the Financial Services and Markets Bill regarding overseas CCPs

On 26 May 2023, HM Treasury (HMT) published a policy paper outlining amendments to the Financial Services and Markets Bill (FSM Bill), concerning overseas central counterparties (CCPs). In January 2023, HMT introduced an amendment to the FSM Bill which, if enacted, would give the Bank of England (the Bank) the power to extend the maximum … Continue Reading

Basel Committee joint report on margin dynamics in centrally cleared commodities markets in 2022

On 24 May 2023, the Basel Committee on Banking Supervision (BCBS), the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a joint  report on margin dynamics in centrally cleared commodities markets in 2022. The report examines margin calls in centrally cleared commodities markets … Continue Reading

Published in the OJ: Corrigenda to Commission Implementing Standards (EU) 2022/1860

On 11 May 2023, there was published in the Official Journal of the European Union (OJ), Corrigendum to Commission Implementing Regulation (EU) 2022/1860 of 10 June 2022 laying down implementing technical standards for the application of Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to the standards, formats, frequency … Continue Reading
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