Treatment of concentration risk towards central counterparties and the counterparty risk on centrally cleared derivative transactions

EAPB wishes to comment on the following aspects: 1. Active accounts-requirement - new Art. 7a EMIR a) Design, calibration, implementation of active accounts-requirement b) Material scope c) Timelines 2. Exposure reduction planning and target setting obligation for institutions - Art. 76(2) CRD/Art. 29(1) IFD and corresponding new supervisory exposure reduction enforcement power - Art. 104(1)(n) CRD/Art.

We highly welcome the Commissions EMIR 3.0 package proposal which aims to enhance the well-functioning of the central clearing framework and to reduce excessive exposure to substantially systemic clearing services of third country CCPs.

Active account. Commissions proposal does not specify whether: (i) the obligation to clear at EU CCP would apply only to new derivatives contracts concluded starting from the entry into force of the new provision or, in alternative, (ii) it would apply also to existing contracts at the date of the entry into force of the new provision, requiring the migration-relocation to an EU CCP of portfolios cleared outside EU.

The following provides a briefing on the main items of ABIs attached position paper. On the Active Account (AAC, Art.7a) we suggest clarifying and revising its scope of its application in terms of entities, contracts and phased-in implementation. As for entities, current scope refers to any FCs and NFCs regardless the presence of open positions at Third Country CCPs.

I write to you on behalf of The Derivatives Service Bureau (DSB) Limited to express our support for the European Commissions review of EMIR (EMIR 3) and our willingness to work with EU Public Authorities, utilising our OTC derivatives reference data, should that be of assistance in meeting your objectives and given the fact the identifiers issued by DSB are used in EU regulatory reports today, including EMIR .

Eni welcomes the European Commission legislative proposal amending the European Market Infrastructure Regulation (EMIR) to strengthen the EU clearing system. The new rules will support hedging activities of energy companies and the wider real economy, helping to maintain and develop liquid and well-functioning EU energy markets, and thus guaranteeing a secure, affordable, and sustainable energy supply.

In keeping with the Capital Markets Unions objective to foster well-functioning and internationally competitive EU capital markets, the European Banking Federation (EBF) fully supports the development of a better integrated and more attractive clearing landscape in the EU, and thus welcomes the legislative package set forth by the European Commission on December 7th, 2022.

Derivatives are essential instruments for companies of all sizes to manage uncertainties arising from their core business activities and connected financial fluctuations risks. European companies enter into derivative contracts as part of their financial risk management strategy to efficiently manage their risks linked to fluctuations in currencies, interest rates or commodities prices.

The EU Commission has proposed a revised European Market Infrastructure Regu-lation. The proposal does not fundamentally alter the role of central counterpar-ties (CCPs) in reducing contagion risk in the derivative markets, but rather aims to encourage further use of EU based clearing houses by allowing them greater freedom in their operations and products, enhance agility in the supervisory framework by easing…

Finance Finlands response to the European Commissions proposal for amending the EMIR Finance Finland supports the efforts to develop a strong CMU to strengthen the EU and secure the international competitiveness of EU clearing members. The aim should be to create an open EU financial framework that does not punish EU-located companies or weaken their competitiveness compared to companies located in third countries.

Euronext Clearing, a multi-asset clearing house (part of the Euronext group), provides proven risk management capabilities on 14 markets, across a range of trading venues including Euronext Milan, MTS, BrokerTec and Hi-mtf. Asset classes cleared include equities, ETFs, Closed-end Funds, Financial Derivatives, Commodities (Agricultural & Energy) and Fixed income (Cash and Repos markets).

Deutsches Aktieninstitut e.V. strictly opposes the proposal to remove the exemption for the reporting requirements for the intra-group transactions. We do welcome certain improvements included in the proposal such as the exclusion of cleared derivatives from the clearing threshold calculation; limiting the clearing threshold calculation to derivative positions of group members established in the EU; the extension of…

The arguments, addressed by Deutsches Aktieninstitut e.V., are fully supported by Mercedes-Benz Group. This particularly applies to the mentioned impact on risk transparency and bureaucracy. In addition, Mercedes-Benz Group is realizing the outsource of EMIR reporting obligation as part of countermeasures, designed to address the overall tight cost situation due to inflationary economic developments.

The Swedish Securities Markets Association (SSMA) welcomes the opportunity to comment on the European Commissions proposal for amendments of EMIR, published on December7th. Below is a summary of our key concerns and observations, more detailed comments can be found in the attached document. - The SSMA does not support the proposal on active accounts and think it is a forced relocation policy.

The European Association of CCP Clearing Houses (EACH) generally welcomes the European Commissions suggestions on the 2022 clearing package. European CCPs have performed robustly during recently market stresses, such as the great financial crisis, Covid-19 and the 2022 energy markets volatility.

Cboe Clear Europe N.V. (Cboe Clear Europe) is pleased to have the opportunity to provide feedback on the Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EU) No 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country central counterparties and improve the efficiency of Union clearing markets (EMIR 3.0) and…

EFET warmly supports the European Commissions proposal to amend EMIR. The EMIR 3.0 proposal facilitates the energy market participants efforts to achieve the aims of the EU internal energy market and helps them to manage the challenges of the current energy crisis, whilst safeguarding transparent and safe financial markets. Energy market participants face numerous challenges caused by the EU energy crisis.

1. Intragroup: We welcome the new measure that simplifies the applicable regime. 2. CO/PSAs: We welcome the clearing exemption for transactions entered into with a PSA established in a third country which is exempted from the clearing obligation under its national law. 3. CO for FCs: We welcome the new calculation formula where only contracts that are not cleared at a CCP should be included.

EuropeanIssuers (EI) welcomes the legislative proposals of the European Commission (EC) amending EMIR, as achieving a stronger EU clearing system actually represents a relevant development in view of EU Capital Markets Union action plan.

LSEG is committed to supporting a healthy and resilient EU ecosystem of clearing (CCPs, clearing members, clients etc.) benefiting from best-in-class services and clearing services adapted to the market they serve. We support the European Commissions (EC) objectives to ensure a strong and safe CCP ecosystem which will enhance the trust in the financial system and support access to liquidity in key markets.

FIA supports open, transparent and competitive markets. We seek to protect and enhance the integrity of the financial system, and promote high standards of professional conduct. FIA represents a wide array of market participants from around the world that depend on these markets including exchanges, clearinghouses, executing brokers, clearing members, software vendors, specialized legal firms, proprietary trading…

The German Banking Industry Committee continues to support the European Commissions (COM) initiative to increase the attractiveness and resilience of the EU clearing landscape and therefore generally supports the package of measures set out in the proposals for a regulation amending Regulations 648/2021 (EMIR), 575/2013 (CRR) and 2017/1131 (MMFR) - hereinafter referred to as the Amending Regulation, and a Directive…

The German Banking Industry Committee continues to support the European Commissions (COM) initiative to increase the attractiveness and resilience of the EU clearing landscape and therefore generally supports the package of measures set out in the proposals for a regulation amending Regulations 648/2021 (EMIR), 575/2013 (CRR) and 2017/1131 (MMFR) - hereinafter referred to as the Amending Regulation, and a Directive…

1. ISDA fosters safe and efficient derivatives markets. We believe that the EU should work towards strengthening the competitiveness of Europes growing derivatives markets by advancing the EUs attractiveness, reducing market fragmentation and upholding a global level playing field for European firms as laid out in our Whitepaper A Roadmap to Make European Clearing More Attractive . 2.

The Alternative Investment Management Association (AIMA) is pleased to give its reaction to the publication by the European Commission of the European Market Infrastructure Regulation (EMIR) review (the Proposal) on 7th December.

EFET welcomes this opportunity for feedback on the EMIR Review/Clearing Strategy and proposes the following recommendations: Extend the list of eligible collateral. CCP should extend to a wider range the non-cash collateral demanded, not only for clearing members, but also for their clients (e.g., letters of credit, EUAs). EFET members do not dispose of same access to money market as clearing members.