March 29, 2018

ESRB, as part of its occasional paper series, published a paper examining the indicators for monitoring central counterparties (CCPs) in EU. The paper presents indicators included in the ESRB Risk Dashboard, along with the additional ESRB-developed indicators, to show a broader range of information on CCP functioning.

The paper provides a methodological background to the development of the individual measures and discusses aspects that should be considered when designing a monitoring framework for CCPs. The paper begins by providing an overview of the central clearing landscape in the EU. It then presents the data used in the development of CCP indicators, also discussing the rationale for the indicators and their drawbacks. Finally, the paper describes a number of data issues identified during the analytical process, including some potential solutions, before offering a conclusion. The conclusion highlights a number of areas in which more granular data are required to monitor the interconnectedness of CCPs within the broader financial system. The paper points to different possible interpretations in respect of the meaning of some public quantitative disclosure (PQD) data fields and raises issues in relation to the harmonization and validation of the dataset used. 

The indicators are designed to provide a macro-prudential view of resources, liquidity, and collateral policies of CCPs; margin and haircut requirements; interoperability arrangements; and market structure and concentration at the CCP level. The indicators cover all CCPs that are authorized within the EU, although the values of individual measures across CCPs should be analyzed and interpreted with caution, keeping in mind the significant differences between individual CCPs’ business models, membership structures, and products cleared. 

 

Related Link: Paper on CCP Indicators (PDF)

Keywords: Europe, EU, Securities, Systemic Risk, CCPs, ESRB

Related Articles
News

PRA Finalizes Reporting Amendments to Pillar 2 Liquidity Framework

PRA published the final Policy Statement PS13/19 on regulatory reporting amendments and clarifications to the Pillar 2 liquidity framework for banks in UK.

June 17, 2019 WebPage Regulatory News
News

IAIS Consults on Revisions to IAIS Supervisory Material

IAIS has launched a public consultation on revisions to the IAIS supervisory material.

June 14, 2019 WebPage Regulatory News
News

IMF Paper on Implementing Prudential Standards in Developing Economies

IMF published a working paper that provides practical guidance on how developing economies, including non-Basel Committee member countries, could incorporate international standards into their prudential framework.

June 14, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for June 2019

EBA published answers to five questions under the Single Rulebook question and answer (Q&A) updates for this week.

June 14, 2019 WebPage Regulatory News
News

FSB Releases Update on Meeting of Regional Consultative Group for Asia

FSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia.

June 14, 2019 WebPage Regulatory News
News

BoE, FCA, and MAS Announce Collaboration on Cyber Security

MAS and UK financial authorities (BoE and FCA) announced that they will work together to strengthen cyber security in their financial sectors.

June 13, 2019 WebPage Regulatory News
News

CBIRC Advisory Committee Holds Meeting, Discusses Regulatory Issues

The first meeting of the International Advisory Committee (IAC) of CBIRC was held in Shanghai from June 11 to 12, 2019.

June 13, 2019 WebPage Regulatory News
News

ECB and EIOPA Publish Common Minimum Standards for Data Revision in EU

ECB and EIOPA published the common minimum standards for supervisory and statistical reporting data by the undertakings in EU.

June 13, 2019 WebPage Regulatory News
News

IMF Reports on 2019 Article IV Consultation with Czech Republic

IMF published its staff report and selected issues report under the 2019 Article IV consultation with Czech Republic.

June 13, 2019 WebPage Regulatory News
News

APRA Response to Proposal on Revisions to Capital Framework for Banks

APRA published a paper in response to the first round of consultation on proposed changes to the capital framework for authorized deposit-taking institutions.

June 12, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3252