ESMA: CCPs, EMIR and MiFID II are top concerns for 2017
28 February 2017 Paris
Image: Shutterstock
The European Securities and Markets Authority (ESMA) is keeping the supervision of EU central counterparties (CCP) front and centre for its 2017 work programme.
ESMA plans to continue the work it began last year on tackling potential risks linked to the increased systemic importance of CCPs.
According to ESMA, this risk must be headed off before further application of its clearing rules enhance the role of CCPs in the market.
In its 2017 Supervisory Convergence Work Programme, ESMA described how it is “undertaking different activities to strengthen CCPs robustness and their supervision, such as common practices across CCP colleges, annual stress testing exercises and mandatory peer reviews”.
ESMA chair Steven Maijoor noted that ESMA must remain sensitive to “emerging challenges”, such as the UK’s eventual departure from the EU, “which will have implications for supervisory convergence”.
Speaking on ESMA’s regulatory priorities in 2017, Maijoor said: “The supervisory work programme sets out how both ESMA and national competent authorities will focus on fostering supervisory convergence across the EU.”
“Our aim in pursuing this work is to achieve high, consistent standards of supervision that supports investor protection, orderly markets and financial stability, which are also key in supporting the capital markets union initiative.”
“We will focus this year on preparations for the implementation of the second Markets in Financial Instruments Directive/Regulation in 2018, improving the quality of data collected by national competent authorities on which all supervisory authorities rely for market surveillance and risk analysis, addressing issues around the provision of cross-border services which may pose risks to retail investors and ensuring further convergence in the approach to CCP supervision.”
ESMA plans to continue the work it began last year on tackling potential risks linked to the increased systemic importance of CCPs.
According to ESMA, this risk must be headed off before further application of its clearing rules enhance the role of CCPs in the market.
In its 2017 Supervisory Convergence Work Programme, ESMA described how it is “undertaking different activities to strengthen CCPs robustness and their supervision, such as common practices across CCP colleges, annual stress testing exercises and mandatory peer reviews”.
ESMA chair Steven Maijoor noted that ESMA must remain sensitive to “emerging challenges”, such as the UK’s eventual departure from the EU, “which will have implications for supervisory convergence”.
Speaking on ESMA’s regulatory priorities in 2017, Maijoor said: “The supervisory work programme sets out how both ESMA and national competent authorities will focus on fostering supervisory convergence across the EU.”
“Our aim in pursuing this work is to achieve high, consistent standards of supervision that supports investor protection, orderly markets and financial stability, which are also key in supporting the capital markets union initiative.”
“We will focus this year on preparations for the implementation of the second Markets in Financial Instruments Directive/Regulation in 2018, improving the quality of data collected by national competent authorities on which all supervisory authorities rely for market surveillance and risk analysis, addressing issues around the provision of cross-border services which may pose risks to retail investors and ensuring further convergence in the approach to CCP supervision.”
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