On May 25, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a report on the proposal for a regulation amending the European Securities and Markets Authority (ESMA) Regulation, and the European Market Infrastructure Regulation (EMIR) in relation to the authorization of central counterparties (CCPs) and recognition of third-country CCPs (EMIR 2.2).

EMIR 2.2 would allow ESMA to classify third-country CCPs based on their level of systemic importance, and impose more stringent measures on those deemed “substantially systemically important”—extending to a requirement that such CCPs can only provide services in the European Union if they are established and authorized within the European Union. The European Commission first published its proposal for EMIR 2.2 in June 2017.

Three-way negotiations between the European Parliament, European Commission and Council of the European Union will follow, once the member states (which comprise the Commission) agree their position.

ECON’s report is available here.

ECON’s press release of May 16, 2018, following adoption of the report, is available here.