Joint Monitoring Mechanism (JMM)

The JMM contributes to ESMA’s mission and to the priorities of the ESMA Strategy regarding fostering effective markets and financial stability and strengthening supervision of EU financial markets in the following ways: 

1. Monitor the implementation at aggregate EU level of the requirements on active accounts and the provision of clearing services, including the following:

   (i) the overall exposures and reduction of exposures to substantially systemically important clearing services;

   (ii) developments related to clearing in EU-CCP and access to clearing by clients to such CCPs, including fees charged by such CCPs and their clearing members for establishing active accounts; 

   (iii) other significant developments in clearing practices having an impact on the level of clearing at EU-CCPs; 

2. Monitor the cross-border implications of client clearing relationships, including portability, and clearing members’ and clients’ interdependencies and interactions with other financial market infrastructures;
3. Contribute to the development of EU-wide assessments of the resilience of CCPs focussing on liquidity, credit and operational risks concerning CCPs, clearing members and clients.
4. Identify concentration risks, in particular in client clearing, due to the integration of EU financial markets, including where several CCPs, clearing members or clients use the same service providers.
5. Monitor the effectiveness of the measures aimed at improving the attractiveness of EU CCPs, encouraging clearing at EU CCPs, and enhancing the monitoring of cross-border risks.
6. In addition, the JMM will facilitate the exchange of relevant information and will coordinate the input by its members to ESMA’s reports or assessments in accordance with EMIR.
7. The JMM shall notify ESMA if it identifies a likely materialisation of financial stability risks in the EU in the context of the active account requirement, as a result of specific circumstances triggering an event with systemic implications in accordance with Article 7a(10) of EMIR.

Members

In accordance with Article 23b(1) of EMIR, the JMM shall be composed of the following members:

a. ESMA;
b. EBA and EIOPA;
c. ESRB;
d. ECB in the capacity of central bank of issue of the euro;
e. ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance with Regulation (EU) No 1024/2013; and
f. the central banks of issue of currencies, other than the euro, in which the derivative contracts referred to in Article 7a(6) of EMIR are denominated.

Observers

In accordance with Article 23b(1) of EMIR, the following authorities may participate in the JMM as observers:

a. the central banks of issue of the currencies of denomination of the derivative contracts referred to in Article 7a(6) of EMIR, other than those listed under f above;
b. the national competent authorities supervising the requirements on active accounts under Article 7a of EMIR, limited to one per member state; and
c. the Commission.