Regulatory Alerts2020-07-14
Added · Updated
Commission Delegated Regulation (EU) 2020/1304 on ESMA assessment of third-country CCP comparable compliance
The European Commission adopted Delegated Regulation (EU) 2020/1304 to supplement Regulation (EU) No 648/2012 by establishing the minimum elements and modalities for ESMA's assessment of comparable compliance requests from systemically important third-country central counterparties (Tier 2 CCPs). The regulation mandates ESMA to grant comparable compliance for capital requirements if a Tier 2 CCP maintains at least EUR 7.5 million in initial capital and meets specific risk-based capital thresholds. It further defines the detailed assessment criteria for Title IV and Title V requirements, including interoperability arrangements, and sets strict procedural deadlines, requiring ESMA to decide on complete requests within 90 working days. The regulation also prohibits refusing comparable compliance solely due to comparable exemptions or conflicting third-country legal obligations, provided the Tier 2 CCP demonstrates equivalent risk management outcomes.