It Was Very Important to Have This Pertinent Meeting in Order to Gather the ECB's Views

On 10 January 2017, Antonio Garcia del Riego, EESC member and rapporteur for the Opinion on Recovery and resolution of central counterparties (CCPs), andMichael Wellenbeck, the expert for that opinion, met with Klaus Lober (Senior Adviser, Directorate General Market Infrastructure and Payments) and Corinna Freund (Principal Market Infrastructure Expert) from the European Central Bank. The meeting took place at the ECB headquarters in Frankfurt.

It was very important to have this pertinent meeting in order to gather the ECB's views, given its central role in the Single Supervisory Mechanism for the banking sector, its existing competences in terms of delivering regulation that ensures efficient and sound clearing and payment systems both within the EU and with third countries, and also its role in providing CCPs with access to central bank funds and, potentially, emergency liquidity.Moreover, according to one of the recommendations for theEESC opinion, the ECB's mandate should be extended to include supervision of CCPs, as well as being the central resolution authority. This in turn should ensure uniform implementation of the regulation across Europe, eliminating the existing confusion aroundCCP supervision and reducing the risk of regulatory arbitrage.

During the meeting, MrGarcia Del Riego and Mr Wellenbeckalso emphasised the need to pay attention tothe possible impact onnon-financial counterparties and segregated client assets,as well as to focus more on preventing them being drawn into unintentional liabilities as a consequence of the combination of the regulation and clearing obligation. These effortsshould help to create stronger links between market infrastructures and the real economy. In addition, due to the negative image among the general public and in the real economy, the EESC representatives strongly advocated more restrictive use of the resolution authority's powers to terminate certain contracts relating to clearing services whereCCPs support spot markets and are clearing cash products.Also, the importance of having an alternative path to resolution ofbanks and CCPs and the need to comply with the European Market Infrastructure Regulation (EMIR) were underlined. Finally, it was stated that a comprehensive stress test needed to be performed in order to better assess the interconnections between different CCPs and clearing members.

All of the issues raised and points made were well received by the participants in the meeting. The ECB will give its opinion on the Commission's legislative proposal in due course.