The European Association of CCP Clearing Houses (EACH) has today published its paper “CCP access to Central Banks’ facilities” which analyses the conditions that apply to CCPs across Europe to Central Banks’ deposits and liquidity. EACH conducted research via internal surveys, the results of which are presented in two parts: CCP access to Central Bank deposits and CCP access to Central Bank liquidity. On top of the research presented, this paper also takes a look forward with some policy suggestions.
This paper has various interesting findings, including:
- CCP access to Central Bank facilities is an important additional asset in the risk management context, underpinning financial stability and CCP resilience, especially in situations of market stress.
- Evidence gathered through this survey shows that there is still no common approach to CCP Central Bank access and that many CCPs cannot have any access to Central Banks or only with significant additional hurdles, such as obtaining a banking license.
- Recognising the prerogative of Central Banks to grant access, EACH calls upon policy makers to develop a consistent framework for CCP access to Central Bank facilities. Specifically, EACH calls for a technical rather than political discussion about Central Bank access by CCPs, to put this whole topic on a more consistent footing, in line with the PFMIs and EMIR.
The full paper is available at https://www.eachccp.eu/wp-content/uploads/2021/12/EACH-Note-on-CCP-access-to-Central-Banks-deposits-and-liquidity-December-2021.pdf