ESMA has published a report on the risks and costs of interoperability arrangements for CCPs under EMIR. The report identifies that the main extra risk created for inter-operable CCPs is the inter-CCP credit risk (i.e. the risk that one CCP, party to an interoperable arrangement, is not able to honour its financial obligations to its interoperable counterpart). Among other things, ESMA concludes that prudential tools have been developed by the CCPs to assess and to cover the extra risks effectively, whether systemic or at individual level. The report also concludes that a number of factors appear to indicate that overall interoperability is beneficial to the market community, including primarily the clearing members.