A new Regulation amending the European Market Infrastructure Regulation has been published in the Official Journal of the European Union, introducing changes to the procedures and authorities involved in the authorization of central counterparties and the requirements for the recognition of third-country CCPs. The Regulation, known as “EMIR 2.2”, is part of the EU’s push to enhance the regulation of CCPs amid concerns regarding potential CCP failures given their increasing systemic importance. The legislative process relevant to EMIR 2.2 has taken place with the U.K.’s exit from the European Union in the background (which is currently expected to take place on January 31, 2019). Many of the changes relevant to third-country CCPs are effectively a response to the U.K.’s decision to leave the EU, given that two of the three largest European Union clearing houses are U.K.-based. The Regulation will enter into force and apply directly in all Member States from January 1, 2020. Separately, EMIR 2.1 or “EMIR Refit” was published in the Official Journal of the European Union in May 2019, and introduced a technical improvements to other aspects of EMIR. The U.K. has since published draft legislation for its post-Brexit onshoring of EMIR 2.1.
Key changes under the EMIR 2.2 amendments include:
Various of the technical standards under EMIR 2.2 have already been consulted upon by ESMA, including on tiering, comparable compliance and fees for third-country CCPs.
View the amending Regulation.
View details of the Council of the European Union's adoption of EMIR 2.2 amendments.
View details of ESMA's technical advice on tiering, comparable compliance and fees for third-country CCPs.
View details of EMIR Refit.
View details of the U.K.'s draft legislation onshoring EMIR 2.1.
[View source.]