Ascultă Radio România Actualitaţi Live

Romania’s EU Presidency: Provisional agreement on clearing house rules

EU will soon have a new framework in place, setting out rules for clearing houses in the single market.

Romania’s EU Presidency: Provisional agreement on clearing house rules

14 Martie 2019, 14:30

EU will soon have a new framework in place, setting out rules for clearing houses in the single market. Romania’s EU Council Presidency and European Parliament reached today a provisional agreement on how EU and third country clearing houses should be supervised in future, taking into particular account the effects of Brexit on the European financial system.

New rules will be implemented through a revision of the European market infrastructure regulation (EMIR) and a revision of the statute of European system of central banks and European Central Bank.

Provisional agreement will now need to be confirmed by EU ambassadors.

Romanian Minister for Finance, Eugen Teodorovici:Clearing houses are a critical link in the financial chain. Today’s agreement is essential to achieve legal certainty on the rules that will apply in the future, in particular as regards the way firms based outside the EU will be able to operate in the single market”.

Clearing houses or central counterparties (CCPs) facilitate the exchange of payments, securities and derivative transactions by centralising and standardising all the steps leading up to the payment. They also take on counterparty risk by stepping in between the seller and the buyer, thereby providing guarantees that the transaction can be completed.

There are currently 16 CCPs established and authorised in the EU. An additional 32 third-country CCPs have been recognised under EMIR’s equivalence provisions, allowing them to offer their services in the EU. Following Brexit, the three CCPs based in the UK will de facto become third-country CCPs.

Aim of the reform is to strengthen supervision of CCPs in order to take into account the growing size, complexity and cross-border dimension of clearing in Europe. It introduces a unique mechanism within the European Securities and Markets Authority to bring together expertise in the field of CCP supervision and ensure closer cooperation between supervisory authorities and central banks responsible for EU currency.

In particular, the agreed text establishes a “CCP supervisory committee” within ESMA composed of an independent Chair, competent authorities of member states with an authorised CCP as well as two independent members. Central banks of countries whose currency is used for the transaction can participate in the committee on certain specific matters but do not have a voting right.

Text also strengthens the existing system for recognising and supervising third country clearing houses. In particular, it introduces a “two tier” system differentiating between non-systemically important CCPs and systemically important CCPs (so-called “Tier 2” CCPs). ESMA would assess the systemic importance of CCPs according to specific criteria, among which the nature, size and complexity of the CCP’s business, its membership structure or the availability of alternative clearing services in the currency concerned.

Tier 2 CCPs would be subject to stricter rules in order for them to be recognised and authorised to operate in the EU, including:

 compliance with the necessary prudential requirements for EU-CCPs while taking into account third-country rules;

 confirmation from the relevant EU central banks that the CCP complies with any additional requirements set by those central banks;

 the agreement of a CCP to provide ESMA with all relevant information and to enable on-site inspections, as well as the necessary safeguards confirming that such arrangements are valid in the third country.

On the basis of a fully reasoned assessment, ESMA would also be able to recommend that a CCP or some of its clearing services are of such substantial systemic importance that the CCP should not be recognised. The Commission could decide, as a measure of last resort, that the CCP will need to establish itself in the EU. The third country CCP would then need to establish itself in the EU in order to be able to operate.

Next steps

Pending technical finalisation of the text, provisional agreement will be submitted for endorsement to EU ambassadors. It will then undergo a legal linguistic revision. Parliament and Council will be called on to adopt the proposed regulation at first reading.

Source:Romania2019.eu

Romania to host a European artificial intelligence center
News in English 12 Octombrie 2025, 18:19

Romania to host a European artificial intelligence center

Romania will host a European artificial intelligence center - announced the Minister of Economy, Radu Miruta. In a message...

Romania to host a European artificial intelligence center
How the new biometric system at Romania's borders will work
News in English 12 Octombrie 2025, 18:18

How the new biometric system at Romania's borders will work

Romania, along with the other member states of the European Union, is activating a new border control mechanism for...

How the new biometric system at Romania's borders will work
A new mobilization exercise for reservists from Bucharest and Ilfov County
News in English 10 Octombrie 2025, 23:32

A new mobilization exercise for reservists from Bucharest and Ilfov County

Reservists residing in Bucharest and Ilfov County will participate in specific training activities, as part of the MOBEX...

A new mobilization exercise for reservists from Bucharest and Ilfov County
Parliament Agenda
News in English 10 Octombrie 2025, 23:32

Parliament Agenda

On next week's Parliament agenda are several legislative initiatives awaiting adoption. These include the bill on the...

Parliament Agenda
Romania and Ukraine marked, in Tulcea, 20 years of good neighborly cooperation
News in English 09 Octombrie 2025, 02:16

Romania and Ukraine marked, in Tulcea, 20 years of good neighborly cooperation

Romania and Ukraine marked on Wednesday, in Tulcea, 20 years of good neighborly cooperation. The collaboration between the...

Romania and Ukraine marked, in Tulcea, 20 years of good neighborly cooperation
Waiting for the final version of the measures for the public administration reform
News in English 09 Octombrie 2025, 02:15

Waiting for the final version of the measures for the public administration reform

Social-Democrat MP Alexandru Rafila says that it is very possible that on Monday the members of the governing coalition will...

Waiting for the final version of the measures for the public administration reform
Local authorities in Bucharest and 5 counties in the south and southeast are preparing for a code red warning for rain
News in English 07 Octombrie 2025, 19:32

Local authorities in Bucharest and 5 counties in the south and southeast are preparing for a code red warning for rain

Local authorities in the capital and five counties located in the south and southeast of Romania are preparing for a code red...

Local authorities in Bucharest and 5 counties in the south and southeast are preparing for a code red warning for rain
Over two thousand new cases of COVID-19 recorded last week
News in English 07 Octombrie 2025, 19:31

Over two thousand new cases of COVID-19 recorded last week

Almost 2.300 new cases of COVID-19 were recorded in Romania last week, down by over 40% compared to the previous period....

Over two thousand new cases of COVID-19 recorded last week

Radio România

"Femeia uitată", spectacol-manifest împotriva violenței domestice

"Femeia uitată", spectacol-manifest împotriva violenței domestice

"Femeia uitată", spectacol-manifest împotriva violenței domestice
Inundaţiile au făcut zeci de victime în centrul şi estul Mexicului

Inundaţiile au făcut zeci de victime în centrul şi estul Mexicului

Inundaţiile au făcut zeci de victime în centrul şi estul Mexicului
Țările UE susțin planul danez pentru protejarea copiilor în mediul online

Țările UE susțin planul danez pentru protejarea copiilor în mediul online

Țările UE susțin planul danez pentru protejarea copiilor în mediul online
DOLJ: Târg de adopții canine, în cadrul Semimaratonului Craiovei

DOLJ: Târg de adopții canine, în cadrul Semimaratonului Craiovei

DOLJ: Târg de adopții canine, în cadrul Semimaratonului Craiovei