The World Federation of Exchanges Responds to ESMA’s Consultation Paper on Draft RTS on Valuation of CCPs Assets and Liabilities in Resolution

The Federation appreciates the opportunity to respond to this Consultation Paper relating to draft Regulatory Technical Standards (RTS) on the Requirements for Independent Valuers, the Methodology for Assessing the Value of the Assets and Liabilities of a CCP, the Separation of the Valuations, the Buffer for Additional Losses to be Included in Provisional Valuations and the Methodology for Carrying out the Valuation for the Purpose of the ‘No Creditor Worse Off’ (NCWO) principle. We agree with the proposed criteria of assessment and the approaches ESMA has taken to outline the draft RTS as they are in line with existing accounting procedures and standard requirements for ensuring the independence of valuers. We welcome ESMA’s proposal to keep CCP-specific knowledge as part of the requirements for independent valuers.

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