ESMA consults on CCP investment practices for highly liquid financial instruments

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today launches a consultation paper (CP) examining the potential extension of the list of financial instruments eligible for investments by CCPs under EMIR, including EU Money Market Funds (MMFs).

The consultation paper (CP) explores the benefits and disadvantages of the potential inclusion of financial instruments that are considered highly liquid with minimal market and credit risk. It also looks at whether the inclusion of MMFs is authorised under the EU Money Market Funds Regulation (MMFR).

ESMA will consider the responses it receives to this consultation paper by 24 January 2022 and expects to publish a final report in Spring 2022. This CP will primarily be of interest to EU central counterparties, their clearing members and clients of those clearing members.