Following its consultation earlier this year, the European Securities and Markets Authority has published final reports and the final technical advice on third-country CCP tiering, comparable compliance and fees under draft revisions to the European Market Infrastructure Regulation, known as EMIR 2.2. EMIR 2.2 will change the requirements for the supervision of both EU and third-country CCPs, and includes the controversial formal EU "location policy" for CCPs. The technical advice will assist the Commission in preparing the final delegated legislation that will supplement the EMIR 2.2.
Each of the reports summarizes the key points arising from the consultation and indicates whether and how ESMA has taken into account the feedback in preparing the final advice. There are substantive differences between the consultation and final versions of the technical advice for each topic. For example, new definitions of EU clearing member and EU client have been introduced to determine a CCP's connection to the EU. Controversially, these definitions will include non-EU subsidiaries of EU entities. In addition, several items which might prove complicated for third-country CCPs to comply with due to home jurisdiction legal requirements have been added to a list of requirements where derogations might become available.
ESMA has provided the final advice to the European Commission. The Commission is empowered to adopt the related delegated legislation within twelve months of EMIR 2.2 coming into force. According to the EU Council's press release in October, EMIR 2.2 is scheduled to be published in the Official Journal of the European Union on December 12, 2019 and would come into force 20 days later. ESMA confirms that the Commission will consult publicly before adopting final delegated legislation.
View the technical advice on comparable compliance.
View the technical advice on criteria for tiering third-country CCPs.
View the technical advice on fees for third-country CCPs.
View details of the Council's October press release.
View details of ESMA's consultation on the draft technical advice.
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