Summary of CySEC's Circular C585
Memo #39-2023
CySEC Circular No: C585
Date: 03/07/2023
Subject: ESMA Guidelines on further specifying the circumstances for temporary restrictions in the case of a significant non-default event in accordance with Article 45a of EMIR
Purpose: To remind the regulated entities that ESMA has published the Guidelines on further specifying the circumstances for temporary restrictions in the case of a significant non-default event in accordance with Article 45a of EMIR.
In Summary:
CySEC has issued the Circular C585 on 03/07/2023 to remind the Cyprus Investment Firms (CIFs), UCITS Management Companies (‘UCITS MC’) and the Alternative Investment Fund Managers (AIFMs), that the European Securities and Markets Authority (ESMA) has published the Guidelines on further specifying the circumstances for temporary restrictions in the case of a significant non-default event in accordance with Article 45a of EMIR (the ‘Guidelines’) on 02/06/2023.
These Guidelines apply to national competent authorities designated pursuant to Article 22 of EMIR (European Market Infrastructures Regulation – Regulation (EU) No 648/2012 of the European Parliament and Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories).
According to Article 45a of EMIR, in the case of a significant non-default event as defined in point (9) of Article 2 of CCPRRR (Regulation (EU) 2021/23), CySEC may require the Central Counterparty (CCP) to refrain from undertaking any of the restricted actions for a period specified by CySEC, that cannot exceed five years.
The Guidelines provide CySEC with guidance on the circumstances under which it should consider requiring the CCP to refrain from undertaking certain restricted actions to protect their capital resources.
The Guidelines are applicable from 2nd of August 2023.
CySEC notes that it has adopted these Guidelines by incorporating them into its supervisory practices and regulatory approach.
The Guidelines can be found on the following link: https://www.esma.europa.eu/sites/default/files/2023-06/ESMA91-372-1704_Final_GLs_on_Restrictions_Article_87_CCPRRR_-_45a_of_EMIR.pdf
Read the CySEC Circular C585
Read more news at Regulatory News
