CCP Directorate

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published two Final Reports including guidelines on the central counterparties (CCPs) Resolution Regime under the CCP Recovery and Resolution Regulation (CCPRRR). 

The Guidelines on the assessment of resolvability set out common aspects to be assessed by resolution authorities when evaluating the extent to which a CCP may be resolved without relying on certain types of external financial support, including public financial support or central bank assistance.  

The Guidelines on the cooperation arrangements specify provisions to be included in cooperation arrangements that shall be entered into between competent or resolution authorities and third-country authorities. These arrangements relate to EU CCPs that provide services to clearing members and clients located in third countries as well as to third-country CCPs that provide services to clearing members and their EU-based clients.

Next steps

The Final Reports take into account responses received to the two Public Consultations published in May 2022. ESMA also sought the advice of the Securities and Markets Stakeholder Group.

The Guidelines will apply following their publication by ESMA on its website in the official languages of the European Union. The comply or explain procedure will follow, in accordance with Article 16(3) of ESMA Regulation.

 

Further information:

Sarah Edwards
Senior Communications Officer
@ press@esma.europa.eu

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, today announces that six central counterparties (CCPs) established in India will have their recognition decisions withdrawn in accordance with the European Market Infrastructure Regulation (EMIR).

ESMA had to tier and review the recognition of all third country CCPs (TC-CCPs) that had been recognised prior to 21 September 2020, in accordance with EMIR (Article 89(3c)). Among these TC-CCPs, six are in India, namely:

  • The Clearing Corporation of India (CCIL), supervised by the Reserve Bank of India (RBI);
  • Indian Clearing Corporation Limited (ICCL), supervised by the Securities and Exchange Board of India (SEBI);
  • NSE Clearing Limited (NSCCL), supervised by SEBI;
  • Multi Commodity Exchange Clearing (MCXCCL), supervised by SEBI;
  • India International Clearing Corporation (IFSC) Limited (IICC), supervised by the International Financial Services Centre Authority (IFSCA); and
  • NSE IFSC Clearing Corporation Ltd (NICCL), supervised by the IFSCA.

After conducting its assessment, ESMA established that not all of the cumulative conditions under EMIR for the recognition of these six TC-CCPs are met, as no cooperation arrangements (compliant with Article 25(7) of EMIR) have been concluded between ESMA and each of the relevant Indian authorities, i.e. RBI, SEBI and IFSCA. Therefore, the condition under point (c) of Article 25(2) of EMIR is not met.

As a result, ESMA concludes that these TC-CCPs cannot continue to be recognised in the European Union under the currently applicable EMIR regime. As of the date of application of the withdrawal decisions, these TC-CCPs will no longer be able to provide services to clearing members and trading venues established in the EU.

To mitigate the adverse impacts on EU market participants, ESMA will defer the application of the withdrawal decisions until 30 April 2023.

The detailed list of recognised TC-CCPs is published on the ESMA website.

ESMA, the EU’s financial markets regulator and supervisor, today proposed measures to alleviate the liquidity pressure on non-financial counterparties (NFCs) active on gas and electricity regulated markets cleared in EU-based CCPs.

ESMA’s Final Report provides draft regulatory technical standards (RTS) which temporarily expand for a period of 12 months the pool of CCP eligible collateral to uncollateralised bank guarantees for NFCs acting as clearing members and to public guarantees for all types of counterparties.

The report published today follows ESMA’s earlier response to the Commission and is accompanied by a Q&A clarifying the eligibility of bonds and commercial paper as collateral for CCPs.

As outlined in its letter, ESMA will continue to work on other potential measures to respond to the extreme volatility in the energy markets.

Next steps

The Final Report was sent to the European Commission for endorsement and will then be subject to a scrutiny procedure by the European Parliament and the Council.

 

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