The EBA has adopted draft technical standards on Capital Requirements for Central Counterparties under the EMIR Regulation. The draft regulatory technical standards were developed by the EBA with the aim of specifying the requirements expressed in the EMIR Regulation.  

The draft RTS provide that a CCP should hold capital, including retained earnings and reserves, that is at all times at least equal to the sum of:

  • the CCP’s gross operational expenses during an appropriate time span for winding down or restructuring its activities;
  • the capital necessary to cover the overall operational and legal risks;
  • the capital necessary to cover credit, counterparty credit and market risks not covered by specific financial resources; and
  • the capital necessary to cover business risk.

The draft RTS will now be sent to the European Commission who shall decide whether to endorse it within 3 months.  

The EBA has also adopted an opinion in order to raise awareness of the European Commission regarding market developments and supervisory practices which should be taken into consideration for a future review of the EMIR Regulation.