The European Parliament political group rapporteurs responsible for the dossier on measures to reduce excessive exposure to third country central counterparties and improve the efficiency of European clearing markets – which includes a review of the European Market Infrastructure Regulation (EMIR) – will meet on 13 September. On this occasion, they will attempt to reach a compromise on several parts of the text, notably on the role of the European Securities and Markets Authority, before a vote in committee, expected on 28 November.
Discussions should first focus on active accounts and arrangements for dealing with the risks associated with excessive exposure of EU clearing members and clients to third country central counterparties.
On this point, the rapporteur, Danuta Hübner (EPP, Polish), proposes that ESMA develop regulatory technical standards to specify the frequency with which new positions must be entered into an account for it to be considered ‘active’. These draft technical standards should be submitted to the Commission no later than six months after the entry into force of the text.
The rapporteur also proposes that central counterparties established in the EU should be required to report a range of information on a monthly basis, including values and volumes cleared by currency and asset class, investments and capital of the central counterparty, margin requirements of clearing members, contributions to the default fund and resources contractually committed to default management.
Information on the central counterparty’s available liquid resources and the results of liquidity stress tests should also be provided.
ESMA would have 12 months from the entry into force of the text to submit draft implementing technical standards specifying the data standards and formats for the information to be disclosed.
ESMA would also be responsible, in collaboration with the European Banking Authority and the European System of Central Banks, for developing draft regulatory technical standards specifying the details of interoperability and interconnection between central counterparties. These draft standards should also be submitted to the Commission within 12 months of the text coming into force. (Original version in French by Thomas Mangin)