C 204/4
EN
Official Journal of the European Union
12.6.2023
Robust arrangements ensuring the safety and efficiency of Union central clearing are critical from the perspective of the Eurosystem as central bank of issue.
Disruptions at a CCP with significant euro-denominated business could have a negative impact on the liquidity position of euro area credit institutions and the smooth operation of payment systems, implying risks to effective monetary policy transmission and, ultimately, to achieving the Eurosystem’s primary objective of maintaining price stability (3).
A strong Union central clearing system is also important for the Single Supervisory Mechanism (SSM) due to the size of the exposures of SSM supervised credit institutions to EU CCPs.
Specific observations
1.
Enhancing cooperation between authorities The ECB supports the proposed strengthening of cooperation among authorities at Union level and the expanded role for the European Securities and Markets Authority (ESMA) in fostering supervisory convergence, in particular by voting and opining on supervisory matters, as well as coordinating in crisis situations.
The ECB believes that this is a step in the right direction, enhancing the supervision of central clearing at the Union level, considering the growth of clearing capacity within the Union and the related risk with a cross-border dimension.
The importance and complexity of EU CCPs, which is expected to increase with the implementation of the active account requirement, as well as CCPs’ interconnection with significant credit institutions as their clearing members, call for stronger supervision at Union leveland the need to manage the potential spill-over of systemic risk across several Member States.
1.1.
Colleges
1.1.1.
Ongoing involvement of the college: opinions and annual review process The colleges framework, established pursuant to Regulation (EU) No 648/2012 of the European Parliament and of the Council (4) (hereinafter ‘EMIR’), has proven to be an effective way to address the specific challenges of central clearing resulting from the pronounced risk implications of CCPs across borders and sectors.
Colleges enable authorities from different jurisdictions and with diverse mandates to exchange information, provide input, and raise concerns regarding the risk management approaches and range of services of EU CCPs.
Currently, colleges issue opinions on, among others, the authorisation of CCPs, the extension of CCPs’ activities and services and significant model changes.
However, CCPs’ risk management responses to evolving market developments and risks are not currently scrutinised in formal college processes unless such CCPs’ actions imply a significant change of activities or risk models.
With a view to strengthening college involvement on an ongoing basis, the ECB fully supports the Commission’s proposal for the competent authority of each CCP to submit to the college, on at least an annual basis, a comprehensive report reviewing the CCP’s compliance with the provisions of EMIR and evaluating the risks to which the CCP is exposed (5).
The ECB welcomes the Commission’s proposal to require the college to issue additional opinions on key supervisory decisions, such as with respect to reports on the review and evaluation of the CCP, margin requirements and potential withdrawals of authorisation (6).
(3) See General observations of Opinion CON/2017/39 of the European Central Bank of 4 October 2017 on a proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1095/2010 establishing a European Supervisory Authority (European Securities and Markets Authority) and amending Regulation (EU) No 648/2012 as regards the procedures and authorities involved for the authorisation of CCPs and requirements for the recognition of third-country CCPs (OJ C 385, 15.11.2017, p. 3).
All ECB opinions are available on EUR-Lex.
(4) Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1).
(5) See Article 1, point (16)(b), of the proposed regulation.
(6) See Article 1, point (12), of the proposed regulation, which inserts a new Article 17b(1), point (b), in EMIR.