EACH calls for regulatory stability in new manifesto
04 December 2024 Belgium
Image: aga7ta/stock.adobe.com
The European Association of CCP Clearing Houses (EACH) has published its ‘Manifesto for Efficient and Resilient Capital Markets’, outlining strategic priorities to enhance financial stability and promote economic growth.
The document emphasises the crucial role of central counterparties (CCPs) in managing market risks, with EACH highlighting three core priorities to strengthen the clearing ecosystem.
These are a competitive and resilient clearing ecosystem, stability in regulatory frameworks, and international alignment to eliminate inconsistencies.
Key proposals include simplified central bank access, removal of tax complexities, streamlined approval processes under EMIR 3, enhanced transparency measures, and a smooth transition to T+1.
The manifesto also calls for targeted regulatory adjustments to support innovation and improve readiness for non-cash collateral.
Rafael Plata, secretary general at EACH, says: “Capital markets play a crucial role in promoting economic growth and prosperity. The EU’s EMIR 3 legislation has targeted a reduction of unnecessary regulatory burden while preserving financial stability.
“More can be done along this line, and I look forward to working with the capital markets ecosystem to unlock the full benefits that CCPs bring.”
According to EACH, Europe is currently home to 14 CCPs in the EU, three in the UK, one in Switzerland, and one in Turkey, collectively managing risks exceeding €500 billion for clearing members and clients.
In a joint statement, Julien Jardelot, Niels Brab, and Tim Grange, co-chairs of EACH, say: “CCPs serve as essential infrastructures in financial markets mitigating systemic risk, providing transparency through fair valuations and independent risk management, as well as optimising the use of the capital markets ecosystem through netting, reducing counterparty risks, and lowering trading costs.
“We look forward to authorities considering the three keys for efficient resilience in the EACH manifesto to further benefit the capital markets ecosystem.”
The document emphasises the crucial role of central counterparties (CCPs) in managing market risks, with EACH highlighting three core priorities to strengthen the clearing ecosystem.
These are a competitive and resilient clearing ecosystem, stability in regulatory frameworks, and international alignment to eliminate inconsistencies.
Key proposals include simplified central bank access, removal of tax complexities, streamlined approval processes under EMIR 3, enhanced transparency measures, and a smooth transition to T+1.
The manifesto also calls for targeted regulatory adjustments to support innovation and improve readiness for non-cash collateral.
Rafael Plata, secretary general at EACH, says: “Capital markets play a crucial role in promoting economic growth and prosperity. The EU’s EMIR 3 legislation has targeted a reduction of unnecessary regulatory burden while preserving financial stability.
“More can be done along this line, and I look forward to working with the capital markets ecosystem to unlock the full benefits that CCPs bring.”
According to EACH, Europe is currently home to 14 CCPs in the EU, three in the UK, one in Switzerland, and one in Turkey, collectively managing risks exceeding €500 billion for clearing members and clients.
In a joint statement, Julien Jardelot, Niels Brab, and Tim Grange, co-chairs of EACH, say: “CCPs serve as essential infrastructures in financial markets mitigating systemic risk, providing transparency through fair valuations and independent risk management, as well as optimising the use of the capital markets ecosystem through netting, reducing counterparty risks, and lowering trading costs.
“We look forward to authorities considering the three keys for efficient resilience in the EACH manifesto to further benefit the capital markets ecosystem.”
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