EFAMA appreciates the opportunity to comment on the EMIR 3.0 proposal reforming the clearing framework in the EU. We share the objectives of this review which seek to ensure financial stability in the EU, and the well-functioning of the existing central clearing framework. We understand the objective to reduce excessive exposure to substantially systemic CCPs over time, though we maintain that any regulatory measures should be proportionate to the regulatory rationale, and should not unduly harm market participants.

The proposal contains some strong points that we readily welcome. These mainly relate to enhancing the regulatory processes that CCPs are subject to in bringing activities and services to market, improvements in CCP margin transparency, clarifications on transaction exemptions, and changes to the Clearing Threshold calculation.

However, the objective of maintaining a competitive and efficient clearing ecosystem would be undermined by the proposal to introduce mandated active accounts at EU CCPs. Asset managers require a free choice of CCP in order to fulfil their fiduciary duty to act in their client’s best interest and obtain the best investment outcomes. The measures to enhance EU CCP attractiveness should in themselves draw greater clearing activity organically, without the need to introduce an active account obligation.