Regulatory Alerts2023-07-03 | C586CySEC Circular C586 on ESMA Guidelines for CCP Failure Determination
The Cyprus Securities and Exchange Commission issued Circular C586 to inform regulated entities that it has adopted ESMA Guidelines regarding the circumstances under which a central counterparty is deemed to be failing or likely to fail. These guidelines, published by ESMA on June 1, 2023, aim to promote convergence in supervisory and resolution practices by clarifying the objective elements required to trigger resolution actions under Article 22 of the CCPRRR. CySEC incorporated these guidelines into its supervisory framework effective August 1, 2023, expanding the scope to include consultation and information exchange procedures between competent and resolution authorities.
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