The European Securities and Markets Authority (ESMA) has today opened a public consultation regarding the Captial Requirements Regulation (CRR). The CRR tasks ESMA with defining “main indices” and “recognised exchanges”, concepts that are used –inter alia - in the specification of “eligible collateral”.
Defining “main indices” and “recognised exchanges” is important for the calculation of credit risk by the credit institutions and investment firms to which that Regulation applies. This CP sets out a proposed rationale for each definition, and includes a draft Implementing Technical Standards (ITS) which contains a proposed list of “main indices” and “recognised exchanges”.
Next steps
ESMA will consider all feedback received in relation to this consultation when finalising the draft ITS to be submitted to the European Commission by 31 December 2014 for endorsement.