ESMA promotes consistent (anti-)procyclicality margin measures for CCPs


The European Securities and Markets Authority (ESMA) has issued today final guidelines on anti-procyclicality margin measures for central counterparties (CCPs) under the European Market Infrastructure Regulation (EMIR). 

The Guidelines seek to establish consistent, efficient and effective supervisory practices and to ensure a common, uniform and consistent application of EMIR in order to limit procyclicality of CCP margins.

The adoption of the guidelines should enable national competent authorities (NCAs) to better supervise their CCPs in this respect. CCPs may also need to adapt their models and processes to the guidelines. Procyclicality of margin refers to the fact that margin requirements for the same portfolio are higher in times of market stress and lower in calm conditions.


Under EMIR, CCPs are required to monitor and account for procyclical effects of margins including to make disclosures on its risk management practices such as the models used for the calculation of margins. Therefore, ESMA’s guidelines promote consistent supervision of such requirements including:

  • monitoring of the procyclicality of margin requirements;
  • implementation of anti-procyclicality margin measures; and
  • disclosures to facilitate margin predictability.

Next Steps

The guidelines will become effective from 3 December 2018. The existing CCP Q&A 9(c) will be deleted as of the same date as the new guidelines cover its purpose.

The guidelines will be translated into the official languages of the European Union and within two months from the date of publication of the translations, each NCA must notify ESMA of its intent to whether or not to comply with the guidelines.

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