12.6.2023
EN
Official Journal of the European Union
C 204/9
Furthermore, in view of the JMM’s novelty, the ECB suggests providing greater flexibility to the JMM regarding the scope of its potential work.
To this end, a provision should be introduced that allows for, where considered helpful, the possibility that two or more JMM members agree to use the JMM framework as the basis for conducting crosssectoral analyses on additional Union-wide and cross-sectoral topics of common interest related to central clearing.
1.5.
Supervision of recognised third-country CCPs The ECB generally supports the amendments introducing more proportionality into the recognition process of third-country CCPs as well as the amendments ensuring that ESMA receives all necessary information from Tier 2 third-country CCPs for the purposes of its supervisory activities.
The ECB suggests further clarifying the scope of the consultation of the central bank of issue in relation to the supervisory activities and procedures regarding Tier 2 third-country CCPs.
Currently, this scope of consultation is delimited to the CCP's compliance with the five areas of relevance from a central bank of issue perspective: margins, liquidity risk controls, collateral, settlement and interoperability arrangements (19).
In practice, CCPs’ compliance with these areas may be the subject of formal decisions taken by ESMA pursuant to certain provisions (20) as well as of specific supervisory ESMA assessments and procedures and the CCP Supervisory Committee.
Furthermore, the area of margin requirements is governed by certain provisions of EMIR (21).
It is important to consult the central banks of issue on decisions regarding the review of models, stress testing and back testing for the validation of the models and parameters adopted by the CCP to calculate its margin requirements, default fund contributions, collateral requirements and other risk control measures under EMIR (22).
Therefore, the ECB recommends maintaining the focus of the scope of the central banks of issue consultations on those five areas, but to further clarify the type of ESMA acts where the central banks of issue should be consulted (e.g., by including supervisory assessments).
Furthermore, the scope of consultation should include all relevant EMIR provisions that empower ESMA to adopt a decision or conduct a supervisory assessment within these areas.
2.
Updating prudential requirements
2.1.
Amendments to CCP requirements
2.1.1.
Participation and segregation requirements The ECB welcomes the proposal amending the admission requirements established by CCPs for clearing members.
The specific features of non-financial counterparties within the context of central clearing is highly relevant, especially given recent experiences with large margin calls stemming from the exceptionally high market volatility.
Therefore, CCPs should carefully assess the distinct liquidity profile of non-financial counterparties before they are admitted as direct participants.
CCPs should especially examine whether non-financial counterparties are able to meet potential increases in margin requirements or default fund contributions on a timely basis, even under stressed market conditions.
Furthermore, for the sake of legal certainty, the interaction of non-financial counterparties’ admission as clearing members under EMIR (23) with the requirement for a CCP to be notified as a system pursuant to Directive 98/26/EC of the European Parliament and of the Council (24) would particularly merit further specifications.
Therefore, the ECB suggests that the relevant draft regulatory technical standards (25) should specify the elements of the admission criteria for non-financial counterparties.
Furthermore, the ECB proposes to add the ESCB members to the list of authorities that should be consulted by ESMA during the development of these draft regulatory technical standards.
(19) (20) (21) (22) (23) (24)
See Articles 41, 44, 46, 50 and 54 of EMIR.
See Articles 25(2b) and 25b(1) of EMIR.
See Articles 41 and 49 of EMIR.
See Article 49 of EMIR; see paragraph 2.3 of Opinion CON/2017/39.
See Article 17(4) of EMIR.
Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45).
(25) See Article 1, point (29)(c), of the proposed regulation, which adds a new paragraph 7 to Article 37 of EMIR.