The World Federation of Exchanges Responds to ESMA’s Consultation Paper on Draft Guidelines for the Methodology to Value Each Contract Prior to Termination

In our view, resolution should only be triggered if it is necessary to provide for continuity of clearing services and market stability once the CCP has had opportunity to use all recovery measures available, including the contractual obligations clearing members have signed up to as part of their membership of the CCP. The WFE agrees with the proposed guidelines on valuation methodology and further considerations expressed by ESMA in the consultation paper. We note that predictability of arrangements is of vital importance in any and all phases of operation of central clearing, and valuation methodologies are central to this.

Please find the response to the consultation in full here.

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