ECB has published its opinion on the EMIR proposal for OTC derivatives, central counterparties (CCPs) and trade repositories. It raises a number of issues, including:

  • that there must be a role for central banks in continuing to ensure financial stability of the markets. ECB is concerned EMIR tries to do this through prudential regulation;
  • that CCPs may need stricter regulation than EMIR proposes;
  • the need to follow current Basel and IOSCO standards and proposals on payment and settlement standards; and
  • that the proposal presents central bank liquidity and commercial bank money as two equally safe and preferable options, but that this is not the case.

The opinion attaches some suggested changes to the Commission draft. (Source: CON/2011/1)