ESMA extends CCP collateral emergency measures
16 October 2023 Europe
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The European Securities and Markets Authority (ESMA) has extended emergency measures which temporarily expand the pool of eligible collateral for all types of counterparties.
These measures will be extended for a limited period of six months, according to the European securities markets regulator.
Uncollateralised bank guarantees for non-financial counterparties (NFCs) acting as clearing members and public guarantees for all types of counterparties will continue to be temporarily eligible by central counterparties (CCPs) to avoid potential disruption during the upcoming cold season.
The temporary measures set out in ESMA’s Final Report were adopted on 14 October 2022 to alleviate liquidity pressures observed in cleared energy markets in the spring and summer of 2022.
These pressures were felt by NFCs, says ESMA, that were active on gas and electricity regulated markets and that would clear through EU-based CCPs.
These measures will be extended for a limited period of six months, according to the European securities markets regulator.
Uncollateralised bank guarantees for non-financial counterparties (NFCs) acting as clearing members and public guarantees for all types of counterparties will continue to be temporarily eligible by central counterparties (CCPs) to avoid potential disruption during the upcoming cold season.
The temporary measures set out in ESMA’s Final Report were adopted on 14 October 2022 to alleviate liquidity pressures observed in cleared energy markets in the spring and summer of 2022.
These pressures were felt by NFCs, says ESMA, that were active on gas and electricity regulated markets and that would clear through EU-based CCPs.
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