2019, assessing whether viable technical solutions have been developed for the transfer by pension scheme arrangements of cash and non-cash collateral as variation margins and the need for any measures to facilitate those viable technical solutions - Main contents

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dossier	COM(2021)224 - Under Article 85(2) of Regulation 648/2012 on OTC derivatives, central counterparties and trade repositories, as amended by ...
document	COM(2021)224
date	May 6, 2021

agreement (“repo”) is an agreement to sell securities at a given price combined with an agreement to repurchase those securities at an agreed price at a later date. The repo market brings together firms which provide collateral in exchange for cash and firms which provide cash in exchange for collateral.

(7)

   ESMA, “Report to the European Commission - Report on the Central Clearing Solutions for Pension Scheme Arrangements (No. 2)” , December 2020.

(8)

   ESMA received 19 individual or trade association responses, including 2 confidential ones, and 1 joint response from 10 stakeholders from the pension fund industry.

(9)

   Based on EMIR reporting data.

(10)

   Client clearing contracts often contain a 90-day termination notice clause.

(11)

   PensionsEurope and ISDA, “Potential demand for clearing by EU pension funds”, 2018.

(12)

   ESMA, “Report to the European Commission - Report on the Central Clearing Solutions for Pension Scheme Arrangements (No. 2)”, December 2020.

(13)

   ECB, “Financial Stability Review”, May 2020.

(14)

   From responses to ESMA’s consultation.

(15)

   ECB, “Financial Stability Review”, May 2020.

(16)

   COM(2020) 574 final of 23rd September 2020.

(17)

   ECB, “Financial Stability Review”, May 2020.

(18)

   ECB, “Financial Stability Review”, May 2020.

(19)

   ECB, “Financial Stability Review”, May 2020.

(20)

COM(2020) 574 final of 23rd September 2020.

(21)

   International Capital Market Association, “The European repo market and the Covid-19 crisis”, April 2020.

(22)

   International Capital Market Association, “The European repo market and the Covid-19 crisis”, April 2020.

(23)

   D’Avernas, A., Vandeweyer, Q. and Darracq Pariès, M. (2020), “Unconventional monetary policy and funding liquidity risk”, Working Paper Series No 2350.

(24)

   Eurex, “Derivatives markets after the Covid-19 crisis - A review of the Digital Derivatives Forum”, 2020.

(25)

   In this regard, it is to be noted that the Basel Committee on Banking Supervision and EU authorities recently took action to tackle this issue, by enhancing leverage ratio disclosure requirements. These provisions will be applied by EU banks from June 2021.