AI Summary of Article 14 Authorisation of a CCP
This article outlines the authorisation process for a legal entity in the Union seeking to act as a Central Counterparty (CCP). The application must be submitted to the competent authority of the Member State where the CCP is established, and once granted, the authorisation will apply across the entire Union. The authorisation must detail the specific services, classes of instruments, and ongoing compliance requirements.
Additionally, the European Securities and Markets Authority (ESMA), in cooperation with the European System of Central Banks (ESCB), is tasked with developing regulatory and implementing technical standards by December 2025, covering the necessary documentation and electronic application formats, ensuring that the applicant CCP meets all relevant regulatory requirements.
Article 14 Authorisation of a CCP
1. Where a legal person established in the Union intends to provide clearing services as a CCP, it shall apply for authorisation to the competent authority of the Member State where it is established (the CCP's competent authority), in accordance with the procedure set out in Article 17.
2. Once authorisation has been granted in accordance with Article 17, it shall be effective for the entire territory of the Union.
3. The authorisation referred to in paragraph 1 shall be granted for services and activities linked to clearing and shall specify the services or activities for which the CCP is authorised to provide or perform clearing services, including the classes of derivatives, securities, other financial instruments or non-financial instruments covered by such authorisation.
An entity applying for authorisation as a CCP to clear financial instruments shall include in its application the classes of non-financial instruments suitable for clearing that such CCP intends to clear.
4. A CCP shall comply at all times with the conditions necessary for authorisation.