Key findings from the report note that circuit breakers are more prevalent in cash than in derivatives markets, while a large proportion of respondents confirmed circuit breakers were triggered during March 2020
WFE says the markets remained open and functioning, despite the exceptional circumstances and even during the worst days of the crisis, and after the peak in uncertainty observed in March, markets quickly recovered
“We strongly support the commission’s ambitions for improving operational resilience across all sectors of the financial services industry," says WFE's CEO Nandini Sukumar, CEO of WFE
“The periods of high volatility and low liquidity observed during COVID-19 crisis would have been further exacerbated by the existence of a mandatory buy-in regime,” AFME explains
EACH explains that a delay to CSDR’s SDR would provide market infrastructures and other market participants sufficient time to implement and would also avoid unnecessary duplicative implementation costs
The decision is an important first step for US CCPs registered with the SEC to be recognised in the European Union as it will allow the US CCPs to apply for recognition by ESMA
EACH sees any attempt to alter the current calibration of the CCP’s SIG under EMIR as a potential threat to the risk management benefits provided by CCPs, which were crucial to contain the recent financial crisis
“Procyclicality is a function of the ecosystem and needs to be examined holistically. CCPs exist to manage and mitigate risk and they understand their responsibility to the system. We call on other stakeholders to do the same,” says WFE CEO
EACH has called for a robust and efficient approach to approve CCP products, services and risk models in response to ESMA’s consultation on EMIR article 15 and article 49