Six-months' grace on CCP exposure rules
05 June 2015 Brussels
Image: Shutterstock
The European Commission has extended the transitional period for banks implementing the capital requirements for exposure to central counterparties (CCPs) for another six months.
The Capital Requirements Regulation (CRR) introduced a capital requirement for exposures of EU banks and their subsidiaries to a CCP.
After a previous postponement, the transition period was set to expire on 15 June. It has now been extended again to 15 December.
Jonathan Hill, the EU commissioner responsible for financial stability, financial services and capital markets union, said: "The decision will give the market the legal certainty it needs for the next six months."
He added: "Meanwhile, we are continuing to work hard on solving the underlying issues."
The extension also applies to third-country CCPs seeking recognition in the EU – delaying cost increases for European trading through US CCPs.
The Capital Requirements Regulation (CRR) introduced a capital requirement for exposures of EU banks and their subsidiaries to a CCP.
After a previous postponement, the transition period was set to expire on 15 June. It has now been extended again to 15 December.
Jonathan Hill, the EU commissioner responsible for financial stability, financial services and capital markets union, said: "The decision will give the market the legal certainty it needs for the next six months."
He added: "Meanwhile, we are continuing to work hard on solving the underlying issues."
The extension also applies to third-country CCPs seeking recognition in the EU – delaying cost increases for European trading through US CCPs.
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