The European Securities and Markets Authority (ESMA) has launched seven public consultations to and is looking for stakeholder feedback on implementation of its central counterparty (CCP) recovery mandates.
CCPs provide essential services for the financial market. They are financial institutions which take on counterparty credit risk between transaction participants and provide clearing and settlement services for trades in foreign exchange, securities, options, and derivative contracts.
These seven consultation papers include drafts for regulatory technical standards (RTS) covering the methodology for calculation and maintenance of the additional amount of pre-funded dedicated resources. They also contain guidelines on the consistent application of the triggers for the use of early intervention measures, as well as CCP recovery plan indicators and scenarios.
