ESMA responds to European Commission consultation on EMIR Review
The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has written to the European Commission (EC) providing its high-level response to the consultation on a targeted review of EMIR with respect to the European Union (EU) central clearing framework.
ESMA, in its response, recommends a set of measures for consideration that will support the EU objective of increasing the attractiveness of EU markets and reducing exposure to CCPs located outside the EU.
The recommendations include proposals to:
- increase the attractiveness of cleared EU markets, e.g. by expanding and facilitating entities clearing in the EU;
- improve the clearing obligation framework, e.g. by changing the reference from OTC to non-cleared derivatives in the clearing thresholds;
- incentivise EU clearing participants to reduce their exposures to UK CCPs;
- enhance the EU supervisory framework for CCPs; and
- mitigate risks remaining at UK CCPs;
ESMA plays a central role in the implementation of the clearing obligation, including the review of its scope, as well as in ensuring a robust CCP landscape, by promoting supervisory convergence across EU CCPs and monitoring and supervising TC-CCPs.
The EC, based on the feedback received from stakeholders to its public consultation, is expected to develop a legislative proposal amending the EU central clearing framework.
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