On 28 May 2026, ESMA's Klaus Löber delivered a keynote speech at the 6th EACH CEO Summit, warning central counterparties (CCPs) to bolster resilience against market shocks and cross-border contagion risks. The speech, published by ESMA on 29 May 2026, targets CCPs, clearing members, and EU regulators, urging stronger stress-testing frameworks and enhanced supervisory coordination.
Löber, speaking as a senior ESMA official, emphasized that CCPs must prepare for a more volatile environment, citing recent geopolitical tensions and interest rate swings. He called for improved liquidity management and default procedures, noting that the current framework may be insufficient for extreme scenarios. The speech also highlighted the need for consistent implementation of the European Market Infrastructure Regulation (EMIR) across member states to avoid regulatory arbitrage.
Policy orientations and trade-offs Löber's remarks pull in two directions: increasing CCP resilience versus avoiding excessive compliance costs that could drive clearing activity outside the EU. He advocated for stronger supervisory convergence through ESMA's coordination role, which may shift some authority from national regulators to the EU level. This could enhance systemic stability but reduce flexibility for national competent authorities. The speech also touched on the potential for higher margin requirements, which would protect against defaults but increase funding costs for clearing members and end-users.
Impact on stakeholders CCPs face pressure to upgrade risk models and liquidity buffers, potentially raising operational costs. Clearing members, including banks and brokers, may see higher margin calls and collateral demands, squeezing profitability. EU regulators gain a stronger coordinating role, but national authorities may lose some autonomy. End-users, such as pension funds and corporates, could face higher hedging costs if clearing becomes more expensive.
Expected institutional follow-up ESMA is expected to issue updated guidelines on CCP stress testing and recovery planning in the coming months, building on Löber's speech. The European Commission may also consider legislative tweaks to EMIR to strengthen the EU's clearing framework, with a possible proposal by early 2027.
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