EMIR: ESMA publishes opinion on common supervisory approach for CCPs' service extensions and change of risk models

ESMA has published an opinion that defines a common supervisory approach for supervisors dealing with central counterparties (CCPs) wishing to extend their existing authorisation under EMIR.

Under Article 15 of EMIR, CCPs wishing to extend their businesses to additional services or activities not covered by their initial authorisation must submit a request for extension to their competent authority. Article 49 requires CCPs to obtain validation from their competent authority and ESMA before adopting any significant change to the model parameters. EMIR does not define 'additional services or activities' or 'significant change'. In its 2015 review of CCP colleges under EMIR, ESMA noted the need for a common approach at EU level on the implementation of Articles 15 and 49.

ESMA has decided to provide the opinion to national competent authorities (NCAs) to ensure uniform procedures and consistent approaches throughout the EU and to assist NCAs to guide CCPs in identifying planned new activities and services which qualify as 'additional' and therefore require an extension of authorisation under Article 15 or changes which qualify as 'significant' and therefore trigger the procedure under Article 49 and in planning the necessary time for their related regulatory approval processes.