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The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has today published its annual peer review report on the supervision of European Union (EU) Central Counterparties (CCPs) by National Competent Authorities (NCAs).
The peer review measures the effectiveness of NCA supervisory practices in assessing CCP compliance with the European Market Infrastructure Regulation (EMIR) requirements on outsourcing and intragroup governance arrangements. For this exercise, the review of the functioning of CCP colleges remains overall positive.
The NCAs participating in the current peer review have overall met the supervisory expectations in relation to the supervision of CCP’s outsourcing and intragroup governance arrangements.
In particular, the NCAs consistently assessed the CCPs’ ongoing compliance of outsourcing and intragroup governance arrangements with the respective regulatory requirements in EMIR. In the cases where NCAs met supervisory expectationsonly partially, ESMA has issued recommendations to address the shortcomings identified.
The peer review has also identified the need to promote further supervisory convergence in respect of the definition of major activities linked to risk management.
Next steps
ESMA will follow up on the implementation of the recommendations made to NCAs and work to identify, where relevant, the most appropriate tools to further enhance supervisory convergence on the identification of major activities linked to risk management.
