ESMA clarifies rules for CCPs’ membership criteria and due diligence

The report further clarifies existing rules under the European Market Infrastructure Regulation (EMIR) for clearing members in both areas.

Metadata
Provider: 
ESMAESMA
URL: 
https://www.esma.europa.eu/press-news/esma-news/esma-clarifies-rules-ccps%E2%80%99-membership-criteria-and-due-diligencehttps://www.esma.europa.eu/press-news/esma-news/esma-clarifies-rules-ccps%E2%80%99-membership-criteria-and-due-diligence
Retrieved on: 
Wednesday, January 8, 2020
Information
Tags: 
Economy, Systemic risk, Financial markets, Finance, Money, Corporate law, European Market Infrastructure Regulation, Financial regulation, Clearing, Due diligence, Central counterparty clearing
Summary
Key Points: 
  • The report further clarifies existing rules under the European Market Infrastructure Regulation (EMIR) for clearing members in both areas.
  • ESMA conducted a survey on CCPs Membership Criteria and Due Diligence in order to map CCPs practices following the default of a physical person acting as a clearing member in September 2018 at a CCP authorised to offer services and activities in the Union.
  • This event highlighted the importance of membership criteria as a first line of defence of CCPs to control counterparty credit risk.
  • ESMA investigated the following three topics:

    With regards to EU CCPs due diligence practices, ESMA will consider enhancing supervisory practices, possibly by some form of guidance on detailed practices.

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