The European Association of CCP Clearing Houses (EACH) calls for a EU Savings and Investment Union (SIU) that further strengthens capital markets. EACH Members would like to underline the following key messages included in the response to the European Commission’s consultation on the Savings and Investment Union (SIU):
- Supervision – EACH Members point out that the EMIR 3 supervisory system for CCPs came into force relatively recently in December 2024. It is therefore still being tested at this initial stage of application and it may be too early to objectively analyse its implications. Nevertheless, there is a majority support within the EACH Membership in favour of a more centralised supervision for CCPs in the EU to different degrees, although certain CCPs have expressed support towards the EMIR 3 status quo. EACH Members would also like to caution against models such as regional supervisory hubs or establishing supervisory colleges with enhanced powers.
- Recommendations on possible streamlining and simplification of EU law – EACH supports removing overlapping reporting requirements between different legislations such as EMIR, REMIT, MAR, MiFID and MiFIR, as well as ensuring a level playing field between EU and non-EU CCPs and non-centrally cleared markets, especially in the context of requirements concerning e.g. anti-procyclicality and margin transparency. EACH also calls for the implementation of the appropriate measures to incentivise clearing by fund managers, insurers and public entities, as well as a reflection on how the principle of proportionality is applied in the context of the DORA framework. Furthermore, Members put forward detailed proposals linked to the ESMA Draft RTS on EMIR 3 approval procedures, underlining the need for leaner and clearer processes.
- Lowering barriers in post-trading – EACH Members propose to create incentives for the missing Member States and market participants to migrate flows to T2S. Furthermore, we suggest a series of changes to the SFD and FCD legislations to address specific issues concerning the clearing sector such as need to ensure protection under the SFD for all CCPs/clearing houses for their default management rules and procedures, as well as the necessity to expand the list of collateral eligible under the FCD to cover all assets acceptable as collateral.
- Outsourcing and DLT – EACH calls for a clear guidance based on existing rules in the context of outsourcing, and provides an analysis of the advantages and drawbacks regarding the use of DLT in the clearing sector.
Furthermore, pending the crucial final publication of the ESMA RTS about the approval procedures for products and changes to risk models, the EMIR 3 level 1 text has represented a major step forward in reducing unnecessary regulatory burden for the market while maintaining financial stability safeguards. The SIU project may be inspired by the achievements of the EMIR 3 level 1 text.
