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ESMA consults on guarantees as CCP collateral and on certain aspects of CCP investment policy

AI Analysis

Executive Summary

ESMA has launched a public consultation under EMIR 3 to gather stakeholder input on conditions for CCPs accepting public guarantees, public bank guarantees, and commercial bank guarantees as collateral, eligibility of debt instruments for CCP investment policies, and secured arrangements for emission allowances as margins or default fund contributions. This matters because it permanently broadens eligible collateral types and extends access to NFC clients, enhancing EU CCP efficiency, competitiveness, and accessibility amid liquidity pressures in energy and other markets. #

What Changed

- Permanent expansion of eligible CCP collateral to include public guarantees, public bank guarantees, and commercial bank guarantees, with specified conditions for acceptance. - Criteria for deeming debt instruments as eligible financial instruments under CCP investment policies. - Requirements for highly secured arrangements to deposit emission allowances as margins or default fund contributions. These build on EMIR 3's measures to broaden collateral scope and entity coverage, including NFC clients, addressing prior temporary measures that lapsed or faced expiry challenges. #

What You Need To Do

  • Review and Respond to Consultation
  • Assess Internal Policies
  • Monitor Developments
  • Engage with Industry

Key Dates

30 April 2026 - Consultation response deadline; submit online via ESMA portal, addressing specific questions with rationale. DEADLINE
End of 2026 - ESMA to submit final draft technical standards to the European Commission following final report preparation.

Compliance Impact

Urgency: High - Firms face a tight 2-month window (from 23 February 2026) to influence final RTS, with implementation likely in 2027+ affecting core clearing operations; delays risk non-compliance with broadened collateral rules amid ongoing liquidity strains, especially for NFCs in volatile markets like energy.

Who is Affected

Central Counterparties (CCPs)Clearing Members and their ClientsNon-Financial Counterparties (NFCs)Stakeholders in Energy Markets

Summary

ESMA consults on guarantees as CCP collateral and on certain aspects of CCP investment policy 23 February 2026 CCP The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a public consultation following the review of the European Market Infrastructure Regulation (EMIR 3). ESMA is encouraging all interested stakeholders, including non-financial counterparties (NFCs), to share their views about: the relevant conditions under which ...

Relevant Firm Types

BankBroker DealerAll Firms
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