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Regulatory standards

23 Dec 2015

Regulatory standards

Eurex Clearing AG (Eurex Clearing) has been granted authorisation as a Central Counterparty (CCP) under the European Market Infrastructure Regulation (EMIR)1 on 10 April 2014. The authorization as EMIR compliant CCP also determines Eurex Clearing as a qualifying CCP (QCCP) under Basel III / CRD IV.

The QCCP status means that exposures of financial firms to Eurex Clearing will result in significantly lower capital requirements compared to non-QCCP or bilateral trades.
Eurex Clearing performed an assessment of its compliance with the “Principles for financial market infrastructures” (PFMI) published by the Committee on Payment and Settlement Systems (CPSS) and the Technical Committee of the International Organization of Securities Commissions (IOSCO) in April 2012. The assessment was conducted in accordance with the CPSS-IOSCO assessment methodology and disclosure framework2. Based on the results of this assessment Eurex Clearing is of the opinion that it fully observes the CPSS-IOSCO PFMIs.

Eurex Clearing’s self-assessment was reviewed and validated by KPMG as an independent outside auditor also concluding that Eurex Clearing fully observes the CPSS-IOSCO PFMIs. More details and the full text of KPMG’s assessment can be found on KPMG’s website and below under ‘further information’.

As a CCP compliant with the CPSS-IOSCO PFMI, Eurex Clearing also publishes a comprehensive set of quantitative data. The public quantitative disclosure complements the disclosure framework published by CPSS-IOSCO in 2012. Quarterly updates are being provided in accordance with the frequencies set out by CPMI-IOSCO3.

The quantitative disclosure is intended among others to further enable authorities, participants and the public to compare CCPs, understand and assess a CCP’s systemic importance, gain a clear understanding of the risks associated with a CCP and ultimately to provide full transparency. 

1Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories.

2In December 2012, CPSS and IOSCO published a report containing the “Disclosure framework for financial market infrastructures” (disclosure framework) and the “Assessment methodology for the principles for FMIs and the responsibilities of authorities” (assessment methodology).

3On 1 September 2014, the Committee on Payment and Settlement Systems (CPSS) changed its name to the Committee on Payments and Market Infrastructures (CPMI).