The European Securities and Markets Authority (ESMA) has opened a public consultation on draft guidelines which aim to clarify the implementation of anti-procyclicality provisions for central counterparties (CCPs) under the European Markets Infrastructure Regulation (EMIR).
EMIR requires CCPs to monitor and account for procyclical effects of margins and make disclosures on its risk management practices including the models they use for the calculation of margins. CCPs also need to implement anti-procyclicality margin measures.
The guidelines are addressed to national competent authorities that supervise CCPs authorized under EMIR and seek to promote consistent and uniform application of EMIR and its RTS on: the monitoring of margin procyclicality; the implementation of anti-procyclicality margin measures; and the disclosures to facilitate margin predictability.
ESMA seeks stakeholders’ feedback by 28 February 2018 and will use the feedback received to finalize the guidelines by the first half of 2018.