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Regulation (EU) 2024/2987 of the European Parliament and of the Council of 27 November 2024 amending Regulations (EU) No 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country central counterparties and improve the efficiency of Union clearing markets (Text with EEA relevance)

This regulation amends several EU regulations related to central counterparties (CCPs) and derivatives clearing. The key aspects include:1. The regulation aims to reduce excessive exposures to third-country CCPs and improve the efficiency of EU clearing markets. It introduces new requirements for financial counterparties to maintain active accounts at EU CCPs and clear a representative portion of certain derivatives through them.2. Major changes include:

  • New requirements for financial counterparties to maintain active accounts at EU CCPs for clearing certain derivatives
  • Enhanced supervision and monitoring of CCPs through a new Joint Monitoring Mechanism
  • Simplified procedures for CCPs to extend services and modify risk models
  • New rules on interoperability arrangements between CCPs
  • Enhanced transparency requirements for CCPs and clearing members

3. Key provisions that may impact market participants:

  • Financial counterparties must hold active accounts at EU CCPs for clearing certain derivatives
  • New requirements for transparency in fee disclosures
  • Changes to margin and collateral requirements
  • Enhanced reporting obligations
  • New rules on intragroup transactions and exemptions

The regulation will generally apply from December 24, 2024, with some provisions having different application dates. It represents a significant reform of the EU’s derivatives clearing framework aimed at reducing reliance on third-country CCPs while strengthening EU clearing markets.

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