News: ESMA issues

01 March 2016 | ESMA Feed

ESMA issues report on risks and costs of CCP interoperability

Tuesday 01 March 2016 15:21

The European Securities and Markets Authority (ESMA) has issued today it's final report on systemic risk and cost implications of interoperable arrangements between central clearing houses  (CCPs‎) established under the European Market Infrastructure Regulation (EMIR). The report is available here.

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For those that don't know, CCP inter-operability is the existance of a direct link between two CCP entities with some sort of margining between them on behelf of clients or members of each CCP. The paper describes the various cross-link scenarios, and considers the costs and risks of each. The conclusions in section 5 are benign, and state that inter-operability between CCPs is an overall beneficial effect on the market.