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This response represents the views of European CCPs’ on the European Commission public consultation on the operations of the European Supervisory Authorities (ESAs). Below you can find some of the key points included in our response:
- Extension of ESMA’s direct supervisory powers - Based on the experience of EACH members, we do not have any reason to believe that the current system of supervision set out under EMIR is fundamentally flawed. The current college composition ensures the balance of interests of all relevant market participants and Member States. EACH members believe that it would be very challenging for a single CCP supervisory structure at EU level to represent all the different interests of CCP stakeholders the way colleges currently do. We therefore agree that a combination of national competent authorities and colleges is the most appropriate supervisory structure for CCPs in the EU.
- Supervisory colleges - EACH believes that the approach of having supervisory colleges at EU levels is the right one: it allows for the perfect balance between leading local supervision and inclusion of authorities that may have an interest on CCPs. It also allows for the representation of different sensitivities and regulators, which ensures the balance of interests of all relevant market participants and Member States. Certain improvements could still be considered to the functioning of the CCP supervisory colleges with regard to their expertise and size.
- Supervisory Convergence - EACH supports the regulatory convergence work performed by the ESAs and, within the CCP industry, ESMA in particular, as a means to ensure that EU legislation is applied in a similar manner across different Member States and that CCPs can compete based on similar risk management benchmark and in a level playing field. EACH considers that supervisory convergence could best support the development of new technologies and business models, to the benefit of integrated and efficient capital markets, if the current processes through which CCPs launch innovative risk management products and improve their risk management models are rationalised.
- ESA’s guideline and recommendations - If ESA’s guidelines and recommendations are used as tools to enforce and to achieve supervisory convergences and have ‘de facto’ binding character, then the process in drafting, verifying and approving guidelines and recommendation should follow an orderly regulatory process before they enter into force.
For more information, please find attached the EACH response or visit our website www.eachccp.eu
