On 21 November 2022, the European Securities and Markets Authority (ESMA) published a final report on draft regulatory technical standards (RTS) amending Article 19 of Commission Delegated Regulation (EU) 2018/1229 (RTS on Settlement Discipline). Between 11 July and 9 September 2022, ESMA conducted a public consultation seeking stakeholders’ views on possible amendments to the RTS … Continue Reading
On 17 November 2022, the European Securities and Markets Authority (ESMA) published a final report containing guidelines on the types and content of the provisions of cooperation arrangements of the recovery and resolution of central counterparties (CCPs). Some European CCPs provide services to clearing members and their clients located in third countries and some third-country … Continue Reading
On 31 October 2022, the European Securities and Markets Authority (ESMA) announced that six central counterparties (CCPs) established in India will have their recognition decisions withdrawn in accordance with the European Market Infrastructure Regulation (EMIR). ESMA had to tier and review the recognition of all third country CCPs (TC-CCPs) that had been recognised prior to … Continue Reading
On 20 October 2022, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the implementation of the Central Securities Depositories Regulation. ESMA has updated three questions in the Q&As dealing with settlement discipline. Specifically, the updated questions concern cash penalties and relate to scope, calculation and costs and process.… Continue Reading
On 18 October 2022, the European Commission published a Commission Delegated Regulation amending the regulatory technical standards laid down in Delegated Regulation (EU) 149/2013 as regards the value of the clearing threshold for positions held in over-the-counter (OTC) commodity derivatives contracts and other OTC derivative contracts. The Delegated Regulation modifies Article 11 of Commission Delegated … Continue Reading
On 11 October 2022, the European Securities and Markets Authority (ESMA) published the following: Memorandum of understanding related to ESMA’s monitoring of the ongoing compliance with recognitions conditions by CCPs established in Chile and supervised by the Chilean Market Commission. Memorandum of understanding between ESMA and the People’s Bank of China related to CCPs established … Continue Reading
On 13 October 2022, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2022/1930 of 6 July 2022 amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the date of application of the provisions related to the buy-in regime. Commission Delegated Regulation (EU) … Continue Reading
On 11 October 2022, the European Securities and Markets Authority (ESMA) CCP Supervisory Committee (CCP SC) published strategic objectives, in line with ESMA’s overall strategy for the period 2023-2028 which was launched on 10 October 2022. The CCP strategic objectives build on ESMA’s achievements following the establishment of the CCP SC and outline the most … Continue Reading
On 7 October 2022, the following Delegated Regulations relating to the European Markets Infrastructure Regulation (EMIR) were published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2022/1855 of 10 June 2022 supplementing EMIR with regard to regulatory technical standards (RTS) specifying the minimum details of the data to be reported to … Continue Reading
On 30 September 2022, there was published in the Official Journal of the European Union (OJ): Commission Implementing Decision (EU) 2022/1684 of 28.9.22 on the equivalence of the regulatory framework for central counterparties in Taiwan to Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards Futures Clearing Houses under the … Continue Reading
On 30 September 2022, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2022/1671 of 9.6.22 extending the transitional period referred to in Article 89(1), first subparagraph, of the European Markets Infrastructure Regulation. The Delegated Regulation enters into force on the day following that of its publication in … Continue Reading
On 29 September 2022, the European Commission adopted two decisions determining that the legal and supervisory frameworks for central counterparties (CCPs) in Colombia and Taiwan are equivalent to the requirements applicable under the European Markets Infrastructure Regulation (EMIR). The decisions allow these CCPs to apply for recognition by the European Securities and Markets Authority (ESMA). … Continue Reading
On 28 September 2022, the European Securities and Markets Authority (ESMA) issued a feedback report on the review of the clearing thresholds under the European Markets Infrastructure Regulation (EMIR). The feedback report has been produced in response to Regulation (EU) 2019/834 (EMIR Refit) which introduced a mandate in EMIR for ESMA to periodically review the … Continue Reading
On 26 September 2022, the European Central Bank (ECB) published an opinion on a proposal for a Regulation amending the Central Securities Depositories Regulation. In addition to welcoming the proposed Regulation and setting out certain general observations, the opinion also provides specific observations on the following: Settlement discipline regime. Cooperation between competent authorities and relevant … Continue Reading
On 15 September 2022, the EBA published a letter that the European Commission had sent to both it and the European Securities and Markets Authority regarding a response to the current level of margins and of excessive volatility in energy derivatives markets. The letter outlines that, with the sharp rise in gas and electricity prices … Continue Reading
On 8 September 2022, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report ‘Client clearing: access and portability’. The report considers the benefits and challenges of new access models to central counterparty (CCP) clearing and client-position portability. The report: Describes “direct” and “sponsored” access models … Continue Reading
On 11 August 2022, the European Securities and Markets Authority (ESMA) published a Memorandum of Understanding (MoU) between itself and South Africa’s Financial Sector Conduct Authority, Prudential Authority and the South African Reserve Bank related to central counterparties (CCPs) established in South Africa. By signing the MoU, the signatories affirm their willingness to cooperate and … Continue Reading
On 11 August 2022, the European Securities and Markets Authority published an updated list of third-country central counterparties recognised to offer services and activities in the EU in accordance with the European Markets Infrastructure Regulation. … Continue Reading
On 10 August 2022, the European Commission published a report to the European Parliament and the Council on the treatment of central counterparty (CCP) equity in the write-down and conversion tool under the Regulation on CCP recovery and resolution (CCP-RRR). Under Article 27(7) of the CCP-RRR, the resolution authority must write down and convert any … Continue Reading
Introduction On 4 August 2022, the Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a discussion paper on central counterparty (CCP) practices to address non default-losses (NDLs). Non default events can threaten a CCP’s viability as a going concern and its ability to continue providing critical services. … Continue Reading
On 3 August 2022, the European Securities and Markets Authority (ESMA) updated its Q&As on the implementation of the Central Securities Depositories Regulation (CSDR). The updated Q&As amend settlement discipline question 3 – cash penalties. The question has now been updated to include answers to the following: Article 3(2) of Commission Delegated Regulation 2017/389 provides … Continue Reading
On 29 July 2022, the European Securities and Markets Authority (ESMA) published a call for evidence on pre-hedging. The aim is to promote discussion among stakeholders and gather further evidence on the practice of pre-hedging that could help ESMA to develop appropriate guidance. The call for evidence illustrated the arguments in favour and against such … Continue Reading
On 13 July 2022, the European Securities and Markets Authority (ESMA) published a speech by Klaus Löber (Chair of ESMA’s CCP Supervisory Committee (CCP SC)). Key points in the speech include: The COVID-19 pandemic and then the Russian invasion of Ukraine have had major repercussions on financial markets. But from a central counterparty (CCP) perspective … Continue Reading
On 11 July 2022, the European Securities and Markets Authority (ESMA) published a consultation paper on the clearing obligation (CO) and derivative trading obligation (DTO) in view of the 2022 status of the benchmark transition. The consultation paper contains draft regulatory technical standards (RTS) that complement an earlier set of RTS that removed EONIA and … Continue Reading
