ESMA defines common supervisory approach for CCPs’ service extensions and change of risk models
The European Securities and Markets Authority (ESMA) has issued today an opinion defining a common supervisory approach for supervisors dealing with central counterparties (CCPs) wishing to extend their existing authorisation or change their risk models under the European Market Infrastructure Regulation (EMIR).
The national competent authorities (NCAs) supervising the authorised CCP should follow some commonly agreed indicators to identify when a change is significant and seek the college’s opinion on the project of extension of the services and activities and on the significant change of the risk models and parameters. The college is made up of European NCAs and ESMA.
ESMA now provides an opinion to NCAs for the purpose of building a common Union supervisory culture and consistent supervisory practices, as well as ensuring uniform procedures and consistent approaches throughout the Union.