ESMA has published the framework for its fourth Stress Test for Central Counterparties (CCPs).

ESMA, as required by the EMIR, initiates and coordinates this exercise to assess the resilience and safety of recognised European Union (EU) and Tier 2 Third Country CCPs (TC-CCPs) to adverse market developments and to identify any potential shortcomings.

ESMA, in cooperation with National Competent Authorities (NCAs) and the European Systemic Risk Board (ESRB), tests the resilience of recognised EU and Tier 2 TC-CCPs by exposing them to different stress scenarios comprising extreme but plausible market conditions. The new stress test exercise has the following components:

  • Credit Stress;
  • Concentration risk;
  • Reverse Credit Stress; and
  • Operational risk.

ESMA will also carry out an additional analysis of CCPs’ resources and participants.

The new exercise covers the 13 CCPs authorised in the EU and the 2 UK CCPs classified as Tier 2 (LCH Ltd, ICE Clear Europe Ltd). The publication of the final report and results is scheduled to take place in H2 2022.

EBA has published a consultation paper on draft Regulatory Technical Standards (RTS) specifying the information that crowdfunding service providers offering individual portfolio management of loans shall provide to investors in relation to the method to assess credit risk, and on each individual portfolio.

The consultation runs until 4 September 2021.

In order to reduce the information asymmetry between crowdfunding service providers and investors, as well as to ensure transparency and adequate protection for investors, the latter should have access to all relevant information about the composition of the portfolio, including the projects where their funds are invested, as well as the quality of the loans financing these projects. These draft RTS require crowdfunding service providers to show that the measurement techniques used for credit risk assessments are based on a sufficient number of elements and are appropriate to the complexity and level of the risks underlying i) the single projects; ii) the portfolio; iii) the project owners.

The draft Regulatory Technical Standards also specify the policies, procedures and organisational arrangements that crowdfunding service providers shall have in place in relation to any contingency fund they may offer to investors to compensate them in case project owners do not reimburse their loans.

On the Official Journal of the European Union have been published new regulations on PEPP:

  • Commission Delegated Regulation (EU) 2021/895 of 24 February 2021 supplementing Regulation (EU) 2019/1238 of the European Parliament and of the Council with regard to product intervention
  • Commission Delegated Regulation (EU) 2021/896 of 24 February 2021 supplementing Regulation (EU) 2019/1238 of the European Parliament and of the Council with regard to additional information for the purposes of the convergence of supervisory reporting
  • Commission Implementing Regulation (EU) 2021/897 of 4 March 2021 laying down implementing technical standards for the application of Regulation (EU) 2019/1238 of the European Parliament and of the Council with regard to the format of supervisory reporting to the competent authorities and the cooperation and exchange of information between competent authorities and with the European Insurance and Occupational Pensions Authority.

Consob has ordered the blackout of 5 new websites that abusively offer financial services:

The number of websites blacked out since July 2019 has thus risen to 462.