Recommendation of the European Systemic Risk Board on liquidity risks arising from margin calls

The European Systemic Risk Board recommends that competent authorities ensure central counterparties and clearing members limit sudden, significant changes and cliff effects in margin calls and collateral requirements during periods of acute stress. It requires central counterparties to include the default of any two service providers in their liquidity stress scenarios and to avoid creating unnecessary liquidity constraints by collecting and paying out intraday variation margins on the same day where operationally possible. Competent authorities must report on the implementation of these measures by 30 November 2020, while ESMA is tasked with reviewing technical standards to include these stress provisions by 31 December 2021.

Get ESRB alerts — same-day email on every new publication.

EUR-Lex

Access to European Union law

This document is an excerpt from the EUR-Lex website

You are here

EUROPA

EUR-Lex home

EUR-Lex - 32020Y0720(01) - EN

Help

Quick search

Use quotation marks to search for an "exact phrase". Append an asterisk ( * ) to a search term to find variations of it (transp * , 32019R * ). Use a question mark ( ? ) instead of a single character in your search term to find variations of it (ca ? e finds case, cane, care).

Search tips

Need more search options? Use the

Read the rest free, and get an email when ESRB publishes again

Email me when ESRB publishes something newOne email per publication, same day. Sign in below to keep reading.

Lineage: In force

amendssupersedesissued underrefers toproposed or not in RegAlertarrows run from the older text to the one that changes it

Source: European Systemic Risk Board — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works