Regulatory Alerts2023-05-03
Added · Updated
Commission Delegated Regulation (EU) 2023/1615 on passing on CCP resolution compensation to clients
The European Commission adopts regulatory technical standards requiring clearing service providers to distribute compensation, cash equivalents, or proceeds from Central Counterparty (CCP) resolution to clients and indirect clients in proportion to their qualifying contributions. The regulation mandates that reimbursements be held on separate segregated accounts, distributed without subordination or ranking, and allocated based on the specific types of financial assets received. It establishes strict timelines for handling transfer impediments, including a three-day notification period and a five-day window for appointing alternative recipients, or selling assets at market price if necessary. Clearing service providers must also provide detailed written notifications outlining the calculation methodology, composition of the reimbursement, and any applicable set-offs.