25.5.2023
EN
Official Journal of the European Union
C 184/51
2.3.
The proposal for a regulation aims to provide further stability, predictability and proportionality for all operators with clearing obligations, and introduces requirements for market participants to declare how reliant they are on third countries for the processing of their derivatives transactions.
The proposed amendments also focus on measures to make EU CCPs more attractive and reduce the administrative burden, promote central clearing in the EU by obliging clearing operators to hold an active account in EU CCPs and provide local authorities with the necessary powers to supervise risk related to cross-border transactions.
3.
General comments 3.1.
The EESC has been calling for legislation strengthening the EU capital markets and making it more stable and attractive for a long time (5).
Given the recent geopolitical developments (Russia's invasion of Ukraine, increased energy prices, geopolitical tensions in many parts of the globe, and the COVID-19 pandemic) and the immediate effects on the economic environment, the EESC points out that swift action is needed to safeguard and increase the stability of the EU's financial markets.
The EESC considers that it is crucial for the financial stability of the EU capital markets to have a competitive and efficient clearing system.
3.2.
The Committee welcomes the proposal for a regulation and the Commission's intention to act on ensuring the strategic autonomy of our capital markets, building up our internal clearing capacity and ensuring that the clearing system is safer and more resilient.
Strengthening the EU clearing market should take into account the costs generated by the migration of the capital from non-EU clearing markets, the need to protect the risk-based approach and the interdependence between non-EU and EU financial markets.
3.3.
The proposal to amend the EMIR Regulation comes after the dramatic increase in energy prices in Europe, mainly caused by Russia's unjustified attack on Ukraine; this has generated instability in the clearing markets, with certain companies unable to provide the collateral on their derivatives contracts.
The EESC urges that consolidating the clearing sector in the EU should remain a priority.
Price, liquidity, risk, margins, regulation and efficiency should be considered with a view to making the EU clearing system more competitive.
The Committee endorses the need to reduce the time required to grant authorisations or to extend activities and services, as well as to build a central database.
3.4.
The Committee considers that EU-based CCPs have to devise, design and invest in improving their capacity frameworks in order to persuade market operators to clear their operations in the EU, notably by enhancing their technology and operational capabilities, ensuring better cooperation between market participants and improving risk management practices.
In order to improve predictability, CCPs must be transparent about their fees, margin calls and actions during periods of market stress.
3.5.
Stable capital markets require a balanced and stable labour market.
The EESC appreciates that alongside financial risk, the risk models must account for the social, governance and environmental risks of CCPs, and appreciates that they should be equally important within different risk scenarios and analyses.
3.6.
The EESC appreciates the consultation conducted by the Commission at the beginning of 2022, the meetings with the representatives of Member States and the European Parliament, the financial services and economic and financial committees, as well as the bilateral meetings with relevant stakeholders.
3.7.
The EESC is disappointed that the deadline for UK-based clearing houses to have unlimited access to EU-based stakeholders was extended by three years, to 30 June 2025.
It considers that a thorough plan should have been put in place to incentivise the shift to EU market-based clearing operators immediately after Brexit.
The Committee is critical of the past lack of reaction, limited consultation and slow decision-making process regarding a EUR 81 trillion derivatives market.
3.8.
European banks benefit from a UK market multi-currency pool, and the shift to European clearing houses would generate a euro-based clearing process, with significant costs for the banking system.
Although the EESC supports this shift, and considers that it must be made as soon as possible, it would point out that the right incentives must be provided in order to prevent banks from shifting to other markets.
More targeted and adapted incentives should be taken into account to consolidate the clearing sector in the EU.
(5)
OJ C 155, 30.4.2021, p. 20,