ESMA launches consultation on CCP recovery
12 July 2021 France
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The European Securities and Markets Authority (ESMA) has launched public consultation on how to implement its central counterparty (CCP) recovery mandates.
ESMA’s proposals, detailed in seven consultation papers, aim to deliver CCP recovery plans that protect the financial soundness of CCPs without presenting a need for public support in crisis conditions.
The EU securities market regulator says that harmonised CCP recovery measures will enable CCPs to continue to provide critical functions in the event of a deterioration in their financial condition or when there is a danger that they may breach their capital or prudential requirements.
Respondents are asked to deliver their feedback on the consultation papers by 20 September 2021.
ESMA plans to publish its final reports on the consultation in the final quarter of 2021 or the first quarter of 2022.
ESMA chair of the CCP supervisory committee Klaus Löber says:“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,” says Löber.
ESMA’s proposals, detailed in seven consultation papers, aim to deliver CCP recovery plans that protect the financial soundness of CCPs without presenting a need for public support in crisis conditions.
The EU securities market regulator says that harmonised CCP recovery measures will enable CCPs to continue to provide critical functions in the event of a deterioration in their financial condition or when there is a danger that they may breach their capital or prudential requirements.
Respondents are asked to deliver their feedback on the consultation papers by 20 September 2021.
ESMA plans to publish its final reports on the consultation in the final quarter of 2021 or the first quarter of 2022.
ESMA chair of the CCP supervisory committee Klaus Löber says:“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,” says Löber.
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