ESMA is consulting on draft guidelines on anti-procyclicality margin measures for central counterparties (CCPs). The guidelines aim to clarify the implementation of anti-procyclicality provisions for CCPs under the European Markets Infrastructure Regulation (EMIR). Stakeholder feedback is due by February 28, 2018 and ESMA will finalize the guidelines by the first half of 2018.
Competent authorities must notify ESMA whether they comply or intent to comply with these guidelines, stating the reasons for non-compliance, within two months from the date of publication of the guidelines. In absence of a response by the deadline, competent authorities will be considered non-compliant. The guidelines are addressed to national competent authorities that supervise CCPs authorized under EMIR and seek to promote consistent and uniform application of EMIR and its regulatory technical standards on the:
- Monitoring of margin procyclicality
- Implementation of anti-procyclicality margin measures
- Disclosures to facilitate margin predictability
The draft guidelines address the observations made in the EMIR Review Report No. 2 on the efficiency of margin requirements to limit procyclicality and the 2016 Peer Review on the Supervisory activities on CCP’s Margin and Collateral requirements. EMIR requires CCPs to monitor and account for procyclical effects of margins and make disclosures on its risk management practices, including the models they use for the calculation of margins. CCPs also need to implement anti-procyclicality margin measures.
Comment Due Date: February 28, 2018
Keywords: Europe, EU, Securities, CCPs, EMIR, Anti-Procyclicality Margin, Reporting, ESMA
Previous ArticleFDIC Adopted Supervisory Guidance on Model Risk Management
Next ArticleDNB Issued Banking Newsletter for June 2017
MAS and Temasek jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin, which focused on building a blockchain-based multi-currency payments network prototype.
PRA published a public working draft, or PWD, of version 1.2.0 of the BoE Insurance XBRL taxonomy, along with the related technical artefacts.
CPMI published a report that sets out nineteen building blocks for a global roadmap to improve cross-border payments.
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
APRA updated the lists of the Direct to APRA (D2A) validation rules for authorized deposit-taking institutions, insurers, and superannuation entities.
PRA updated the statement that provides guidance to regulated firms on implementation of the EBA guidelines on reporting and disclosure of exposures subject to measures applied in response to the COVID-19 crisis.
EBA updated the 2019 list of closely correlated currencies that was originally published in December 2013.
ESMA published the final report on the guidelines on securitization repository data completeness and consistency thresholds.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.