Regulatory AlertsESMA Guidelines on Anti-Procyclicality Measures for Margin Requirements for CCPs under EMIR
The European Securities and Markets Authority (ESMA) issued guidelines on June 20, 2019, establishing anti-procyclicality measures for margin requirements applied by Central Counterparties (CCPs) under the European Market Infrastructure Regulation (EMIR). These guidelines aim to mitigate the pro-cyclical effects of margin models during periods of market stress to ensure financial stability. The document provides regulatory expectations for CCPs to adjust their margin methodologies to prevent excessive volatility in margin calls.
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