Featured Product

    EU Amends Rule on Supervision of Third Country Central Counterparties

    December 12, 2019

    EU published Regulation 2019/2099, which amends European Market Infrastructure Regulation or EMIR (648/2012) regarding the procedures and authorities involved for the authorization of central counterparties (CCPs) and requirements for the recognition of third-country CCPs. Regulation 2019/2099 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

    The regulation states that ESMA shall establish permanent internal committee for CCPs (CCP Supervisory Committee) to handle tasks related to CCPs authorized within the Union and third-country CCPs. The CCP Supervisory Committee shall be composed of a Chair, independent members and the competent authorities of member states with an authorized CCP. The supervisory arrangements in EMIR for third-country CCPs offering clearing services within the Union also has been revised. As part of its commitment to integrated financial markets, EC should continue to determine, by way of equivalence decisions, that the legal and supervisory frameworks of third countries fulfill the requirements of EMIR. To enhance implementation of the current equivalence regime in relation to CCPs, EC should be able to, if necessary, specify further the criteria for assessing the equivalence of third-country CCP regimes. 

    When considering the application of a third-country CCP for recognition, ESMA shall assess the degree of systemic risk that the CCP presents to the financial stability of the Union or of one or more of its member states on the basis of objective and transparent criteria set out in Regulation (EU) 2019/2099. CCPs that are not systemically important to the financial stability of the Union, or of one or more of its member states, shall be considered as Tier 1. CCPs that are systemically important or likely to become systemically important for the financial stability of the Union or of one or more of its member states shall be considered as Tier 2. To be recognized and authorized to operate in EU, the Tier 2 CCPs would be subject to stricter rules, including the following:

    • Compliance with the necessary prudential requirements for EU-CCPs while taking into account third-country rules
    • Confirmation from the relevant EU central banks that the CCP complies with any additional requirements set by those central banks
    • ESMA shall conduct investigations and on-site inspections of Tier 2 CCPs and related third parties to whom those CCPs have outsourced operational functions, services, or activities.

     

    Related Links

    Effective Date: January 01, 2020

    Keywords: Europe, EU, Banking, Securities, CCPs, EMIR, Tier 2 CCPs, Systemic Risk, ESMA, EC, European Council, European Parliament

    Featured Experts
    Related Articles
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699