Regulatory Alerts2023-06-02
Added · Updated
Guidelines further specifying the circumstances for temporary restrictions in the case of a significant non-default event in accordance with Article 45a of EMIR
These Guidelines apply to competent authorities designated under Article 22 of EMIR and specify the circumstances under which they may require a central counterparty to refrain from restricted actions, such as dividend distributions or share buy-backs, following a significant non-default event. The document establishes indicators for assessing whether a non-default event poses a significant risk to the CCP’s capital, including scenarios where capital levels fall below notification thresholds or where material operational events or third-party failures adversely affect critical functions. Competent authorities must notify ESMA within two months of publication regarding their compliance status and must apply these Guidelines from two months after their publication on ESMA’s website.
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