Objectives of the session
This session will focus on the main elements that remain to be defined and implemented regarding the EU post-crisis policy agenda for CCPs i.e. the implementation of EMIR 2.2 and the completion of the EU CCP recovery and resolution (R&R) regime.
Regarding EMIR 2.2, the panel will discuss the main issues that need clarifying at Level 2 and also the temporary measures that have been granted to avoid cliff-edge risks from a no-deal Brexit.
Concerning CCP R&R, the panel will discuss the main issues that remain to be defined for completing the EU CCP R&R regime as well as the interactions of this regime with EMIR 2.2 and with the guidance provided at the international level.
Points of discussion
Implementation of EMIR 2.2
- What are the main pending issues in the definition of Level 2 EMIR 2.2 requirements (e.g. tiering criteria, comparable compliance…) and the allocation of supervisory responsibilities for systemically important third-country CCPs? Once the review of EMIR is finalized (EMIR 2.2 and Refit) will the EU have delivered on the G20 objectives regarding OTC derivatives?
- Are the temporary measures put in place by the EU and UK authorities sufficient to avoid potential cliff-edge risks from a no-deal Brexit?
CCP recovery & resolution
- What are the key factors to ensure an effective CCP R&R and are they appropriately covered in the proposed EU regime? What are the main pending issues (e.g. default vs non-default losses, governance issues, capital requirements…)? What are the possible links and interactions between CCP R&R and EMIR / EMIR 2.2 and do they raise any issues?
- Is the work underway on CCP R&R at the international level moving in the right direction? Is the EU CCP R&R proposal consistent with this international guidance?