Latest news from EU institutions and bodies

ESMA’s stress test of Central Counterparties finds clearing system resilient 09 July 2024 CCP Press Releases The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the results of its fifth stress test exercise for Central Counterparties (CCPs). The results confirm the overall resilience of European Union (EU) CCPs, as well as third-country Tier 2 CCPs, to core credit and liquidity financial risks under the tested scenarios. New in this year’s exercise is the exploratory analysis of climate risk. The exercise also included additional market stress scenarios, enhanced model risk assessments for concentration, and extended reverse stress tests for credit and liquidity. Klaus Löber, Chair of the CCP Supervisory Committee, said:  “ESMA’s fifth stress test confirmed the overall resilience of the European clearing landscape to severe credit and liquidity stress scenarios. However, we still have identified areas in which certain CCPs may need to strengthen their risk management frameworks, or where further supervisory work should be prioritised, including on modelling of concentration.” “The stability of the EU financial system relies on resilient CCPs, and the ESMA stress test is a key supervisory tool to identify and mitigate potential risks to financial stability.” ESMA finds: CCPs have robust lines of defence to withstand significant market shocks in combination with the default of the two clearing member groups with the largest exposures; CCPs are also resilient to substantial liquidity stress events, while CCPs’ clearing, and investment activities play a key role in the results; Some gaps persist in the coverage of concentration risk across CCPs and across asset classes, notably for commodity derivative positions;  For climate risk, CCPs’ exposures depend on whether the markets they clear are directly exposed to transition risk, such as commodities and energy. The majority of sampled CCPs have started to integrate climate risk into their stress testing framework; The ecosystem analysis provided insights into the CCPs’ and clearing members’ resources and showed that the total amount of required margin increased by 56% compared to the last exercise. CCP stress test scenarios and outcomes  A total of 16 CCPs were covered by the exercise, including two UK CCPs qualifying as Tier 2 CCPs and all authorised EU CCPs. It assessed credit and concentration risk, liquidity risk, and included a new climate risk component. The exercise was complemented by an enhanced clearing ecosystem analysis. Next steps In line with the EMIR mandate, where the assessments exposed shortcomings in the resilience of one or more CCPs, ESMA will issue the necessary recommendations.   Further information: Sarah Edwards Senior Communications Officerpress@esma.europa.eu 09/07/2024 ESMA91-1505572268-3627 5th CCP Stress Test Report 09/07/2024 ESMA91-1505572268-3847 5th CCP Stress Test FAQ 09/07/2024 ESMA71-545613100-2541 ESMA’s stress test of Central Counterparties finds clearing system resilient - Press Release

CSDR Refit: ESMA consults on rules to recalibrate and further clarify the framework 09 July 2024 Post Trading The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is launching today new consultations on different aspects of the Central Securities Depositories Regulation (CSDR) Refit. The proposed rules relate to the information to be provided by European CSDs to their national competent authorities (NCAs) for the review and evaluation, the information to be notified to ESMA by third-country CSDs, and the scope of settlement discipline. The draft rules are set out in three separate consultation papers, covering: The review and evaluation process of EU CSDs, suggesting a harmonisation of the information to be shared by CSDs on their cross-border activities and the risks to be considered by the relevant authorities for the purpose of feeding the overall assessment of the competent authorities;   Third country CSDs, where ESMA is proposing to streamline the information to be notified, aiming for an accurate understanding of the provision of notary, central maintenance and settlement services in the Union, limiting the reporting burden; and The scope of settlement discipline, covering ESMA’s proposals on the underlying cause of settlement fails that are considered as not attributable to the participants in the transaction, and the circumstances in which operations are not considered as trading. The CSDR Refit aims to fine-tune and further clarify the CSDR framework. All the policy mandates under consultation today will contribute towards the effective recalibration of the CSDR regime. Next Steps ESMA invites EU CSDs, third-country CSDs, CSD participants, as well as any stakeholders that may be impacted by the CSDR settlement discipline to respond to these three consultation papers by 9 September 2024. Following the consultation, the responses will be assessed to finalise the respective proposals, before submission to the European Commission in Q1 2025. Other consultations about other aspects of CSRD will follow in the coming months.   Further information: Cristina Bonillo Senior Communications Officerpress@esma.europa.eu 09/07/2024 ESMA74-2119945925-1984 Consultation Paper on the Draft RTS on the information notified by third-country CSDs 09/07/2024 ESMA74-2119945925-1976 Consultation Paper on the Technical Advice on the Scope of CSDR Settlement Discipline 09/07/2024 ESMA74-2119945925-1996 Consultation Paper on the Draft technical standards amending Regulation (EU) 2017/392 and Regulation (EU) 2017/394 under CSDR on review and evaluation CSDR Refit: Consultation on rules to recalibrate and further clarify the framework

European Commission Speech Chișinău, 09 Jul 2024 Ladies and gentlemen, It is a great pleasure to be in Chișinău today. I would like to begin by thanking Minister Nemerenco, for an important discussion we had o...

The European Investment Bank (EIB) and Banca Sella have signed a €100 million financing agreement to support investments and the working capital and liquidity needs of small and medium businesses (SMEs) and mid-caps, focusing in particular on product and process innovation and projects in cohesion regions. Underpinning its support for local businesses, Banca Sella will provide an additional €100 million to what has been provided for under the agreement with the EIB, increasing the funds made available to small businesses and mid-caps to €200 million.

European Commission Daily news Brussels, 09 Jul 2024 Commission proposes decisions establishing the existence of excessive deficit for seven Member States As part of the European Semester Spring package of June 20...

European Commission Press release Brussels, 09 Jul 2024 The European Commission has today raised €9 billion of EU-Bonds in its 7th syndicated transaction for 2024.

European Commission Press release Brussels, 09 Jul 2024 Today, the Commission proposed to mobilise €77 million from the agricultural reserve to support farmers from the fruit, vegetables and wine sectors.