Regulatory Alerts2023-07-19
Final Report on the Review of the RTS with respect to the procyclicality of CCP margin
ESMA has finalized revisions to the Regulatory Technical Standards to enhance the resilience of EU Central Counterparties by addressing the procyclicality of margin requirements. The updated rules mandate stricter governance, transparency, and quantitative metrics for anti-procyclicality policies, incorporating previous guidelines into binding standards to ensure consistent application across the Union. These changes aim to mitigate liquidity strains and prevent disruptive margin spikes observed during recent market stresses, such as the COVID-19 pandemic and the Russia-Ukraine conflict.
Share