ESMA releases EU CCP supervision review
13 December 2023 France
Image: Andrey Popov/stock.adobe.com
The European Securities and Markets Authority (ESMA) has published its annual peer report on the supervision of EU central counterparties (CCP) by National Competent Authorities (NCAs).
The report measures the effectiveness of NCAs’ supervision of CCPs’ due diligence and review process of clearing members, in line with requirements outlined in EMIR.
ESMA found that the majority of CCPs participating in the review “broadly met supervisory expectations”, and noted that assessments of CCP compliance processes were consistently assessed by NCAs.
While some NCAs were found to have ensured compliance with certain deadlines under EMIR after the end of the review period, ESMA’s report offers an “overall positive” assessment of NCAs’ supervision of CCP governance compliance.
A need for further promotion of convergence, in regard to continuous monitoring of CCP members’ operational capacity, was noted by the report. The association will identify tools to enhance this moving forward, it states.
In response to the report’s findings, ESMA has issued a series of recommendations to NCAs that only partially met expectations.
The report measures the effectiveness of NCAs’ supervision of CCPs’ due diligence and review process of clearing members, in line with requirements outlined in EMIR.
ESMA found that the majority of CCPs participating in the review “broadly met supervisory expectations”, and noted that assessments of CCP compliance processes were consistently assessed by NCAs.
While some NCAs were found to have ensured compliance with certain deadlines under EMIR after the end of the review period, ESMA’s report offers an “overall positive” assessment of NCAs’ supervision of CCP governance compliance.
A need for further promotion of convergence, in regard to continuous monitoring of CCP members’ operational capacity, was noted by the report. The association will identify tools to enhance this moving forward, it states.
In response to the report’s findings, ESMA has issued a series of recommendations to NCAs that only partially met expectations.
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