ECB/2025/29 · GlobalLawDB

Contents

THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,Having regard to the Treaty on the Functioning of the European Union, and in particular Article 127(2), the first and fourth indents, and Article 127(5) thereof,Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 3.1 and Articles 17, 18 and 22 thereof,Whereas:

(1)Under Guideline (EU) 2022/912 of the European Central Bank (ECB/2022/8)^note, national central banks of Member States whose currency is the euro (hereinafter ‘euro area NCBs’) may provide overnight credit through a dedicated crisis facility to central counterparties (CCPs) (hereinafter the ‘CCP credit facility’). Such CCPs must be established in the euro area and meet the requirements set out in Guideline (EU) 2022/912 (ECB/2022/8) (hereinafter ‘eligible CCPs’). In cases where eligible CCPs have not reimbursed intraday credit at the end of a day, they may access the CCP credit facility by automatically rolling over the outstanding intraday credit without the need to request the prior approval of the Governing Council.

(2)With respect to the euro as a currency, the Eurosystem central banks collectively exercise the central bank of issue function in relation to CCPs. In view of this function, requirements relating to safeguards on financial soundness and sound liquidity risk management that need to be complied with by eligible CCPs as well as the method of assessment of compliance with these requirements are put in place.

(3)Safeguards in relation to the CCP credit facility are necessary to ensure that only eligible CCPs that are financially sound and have in place sound liquidity risk management may access the CCP credit facility. Sound liquidity risk management ensures that eligible CCPs have adequate liquidity risk controls in place, including for crisis scenarios under which eligible CCPs are not expected to resort to the CCP credit facility, or – where such access is available to CCPs authorised as credit institutions under Regulation (EU) No 575/2013 of the European Parliament and of the Council^note – to Eurosystem monetary policy operations. Safeguards on financial soundness and sound liquidity risk management should apply to all eligible CCPs, including those that are authorised as credit institutions under Regulation (EU) No 575/2013.

(4)Eligible CCPs’ compliance with the requirements relating to the safeguards on financial soundness and sound liquidity risk management should be assessed by Eurosystem central banks in a forward-looking manner. Therefore, eligible CCPs need to comply – on a continuous basis and without any doubt as regards their ongoing and future compliance – with these requirements. Compliance with the regulatory requirements established under Regulation (EU) No 648/2012 of the European Parliament and of the Council^note in relation to capital, margin, default fund, other financial resources and liquidity risk controls constitutes a necessary but not sufficient condition for assessing financial soundness and sound liquidity risk management by Eurosystem central banks in relation to granting access to the CCP credit facility.

(5)For the purpose of ensuring compliance with the provisions set out in this Decision, it is necessary to specify the Governing Council’s powers to decide on discretionary measures in cases where an eligible CCP does not comply with the requirements relating to the safeguards on financial soundness and sound liquidity risk management. It is also necessary to specify the penalties applicable for cases where a CCP’s access to the CCP credit facility has been limited and the CCP exceeds the restricted level of access, or resorts to the CCP credit facility in breach of relevant requirements relating to liquidity risk controls. With respect to the penalties, there should be sufficient communication between the operators of TARGET component systems and the central bank of issue function of the Eurosystem central banks to ensure compliance with the principle of ne bis in idem.

(6)Where relevant, the requirements relating to the safeguards on financial soundness and sound liquidity risk management, including the related discretionary measures and applicable penalties, should be reflected in the contractual arrangements concluded between the eligible CCPs and the euro area NCBs in relation to the CCP credit facility.

(7)For legal certainty, the date of application of this Decision should be aligned with the date of application of the amendments to Guideline (EU) 2022/912 (ECB/2022/8) relating to the CCP credit facility, which is 6 October 2025,

HAS ADOPTED THIS DECISION: