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
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