In order to monitor the exposure of the EU financial system to recognised third-country CCPs, Regulation (EU) 2024/2987 (‘EMIR 3’) amends EMIR to ensure, inter alia, that competent authorities have the necessary information on the clearing activities undertaken by EU counterparties in recognised third-country CCPs. In this respect, in a new Article 7d, EMIR 3 introduces a reporting obligation to achieve this objective.

As per the definition of a CCP laid down in Article 2(1) of EMIR, a CCP is a legal person that interposes itself between the counterparties to contracts traded on one or more financial markets. Those contracts are varied in nature and may refer to both financial and non-financial instruments, in accordance with the asset classes for which the CCP has been authorised or recognised to provide clearing services to EU counterparties. The exposure of the EU financial system to recognised third-country CCPs cannot therefore be limited to one specific asset class.

The scope of Article 7d(1) of EMIR should be aligned with the scope of products for which third-country CCPs have been recognised by ESMA to provide clearing services to EU counterparties. As such it covers all contracts cleared in those CCPs, distinguishing on the one hand between financial and non-financial instruments and on the other hand, for financial instruments, as per Recital 17 of EMIR 3, at least between securities transactions, derivative transactions on regulated markets and OTC derivative transactions.

Disclaimer in relation to the answers provided by the European Commission in accordance with Article 16b(5) of the ESMA Regulation

The answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.