Draft RTS on changes to CCP’s activities and models
On 8 April 2021, ESMA published its Final Report containing draft regulatory technical standards (RTS) relating to changes to central counterparty (CCP) services and activities, as well as models and parameters under the European Markets Infrastructure Regulation (EMIR).
EMIR requires a CCP wishing to extend its business to additional services or activities, that are not covered by the initial authorization, to submit a request for extension of authorization to its competent authority (Article 15). Prior to making any significant change to its risk models or parameters, a CCP must also obtain validation from its competent authority and ESMA (Article 49). The Draft RTS specify:
the conditions under which additional services or activities to which a CCP wishes to extend its business are not covered by the initial authorization and therefore require an extension of authorization;
the conditions under which changes to the CCP’s models and parameters are significant and therefore require a validation; and
the procedures for consulting the CCP college on whether those conditions are met.