Summary of CySEC's Circular C586
Memo #40-2023
CySEC Circular No: C586
Date: 03/07/2023
Subject: ESMA Guidelines on the application of the circumstances under which a central counterparty is deemed to be failing or likely to fail (Article 22(6) of CCPRRR)
Purpose: To remind the Regulated Entities that the ESMA has published the Guidelines on the application of the circumstances under which a central counterparty is deemed to be failing or likely to fail (Article 22(6) of CCPRRR).
In Summary:
CySEC has issued the Circular C586 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 the application of the circumstances under which a central counterparty is deemed to be failing or likely to fail (Article 22(6) of CCPRRR [Regulation (EU) 2021/23]) (the ‘Guidelines’) on 01/06/2023.
These Guidelines apply to national competent authorities as defined in Article 22 of Regulation (EU) 648/2012 as amended (EMIR) and to resolution authorities, as defined in Article 2(3) of CCPRRR.
The objective of these Guidelines is to promote the convergence of supervisory and resolution practices regarding the application of the circumstances under which a CCP is deemed to be failing or likely to fail.
These Guidelines clarify the different circumstances under which a CCP is deemed to be failing or likely to fail, one of the three cumulative conditions set out in Article 22(1) of CCPRRR for triggering a resolution action.
The Guidelines are applicable from 01/08/2023.
CySEC informs 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/ESMA91-372-2070_Guidelines_FoLTF_Art.22_6__CCPRRR.pdf
Read the CySEC Circular C586
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