INVESTMENTS AND FUNDS

Responses to ESMA's consultation on CCP conflicts of interest management under EMIR

The ESMA has published responses to its June 2017 consultation on guidelines relating to the management by central counterparties (CCPs) of conflicts of interest under EMIR. The consultation ran from 1 June to 24 August.

Only generic provisions relating to CCPs' conflict of interest management are contained in EMIR. CCPs are required to act in the best interests of their clearing members and the clients and as a result, CCPs need to have in place robust arrangements and policies to prevent potential conflicts of interest, and to solve them if they occur. ESMA believes that further guidance would be beneficial and help facilitate supervisory convergence on this area. ESMA expects to publish the final version of the guidelines by the end of 2017.

ESMA, 25 August 2017