ESMA seeks stakeholder feedback on CCP recovery regime

The European Securities and Markets Authority (ESMA) has launched seven public consultations to and is looking for stakeholder feedback on implementation of its central counterparty (CCP) recovery mandates.

CCPs provide essential services for the financial market. They are financial institutions which take on counterparty credit risk between transaction participants and provide clearing and settlement services for trades in foreign exchange, securities, options, and derivative contracts.

These seven consultation papers include drafts for regulatory technical standards (RTS) covering the methodology for calculation and maintenance of the additional amount of pre-funded dedicated resources. They also contain guidelines on the consistent application of the triggers for the use of early intervention measures, as well as CCP recovery plan indicators and scenarios.


Klaus Löber, Chair of the CCP Supervisory Committee, said:

The launch of ESMA’s public consultations, on the implementation of the CCP recovery mandates, is the first step to ensuring consistency of EU central counterparties recovery regimes at EU level in line with the highest international standards.

The proposed Regulatory Technical Standards and Guidelines complement the new EU Regulation on recovery and resolution, and will provide national and EU regulators with the necessary tools to support their supervisory and financial stability objectives while ensuring supervisory convergence across the EU.

The European regulator will take feedback until 20 September 2021. ESMA believes that the feedback will help support the CCP recovery plans and help them continue to provider their critical functions.


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