About ESMA, CCP : Terms of Reference - Joint Monitoring Mechanism

Terms of Reference Joint Monitoring Mechanism 28 April 2025 ESMA91-934075275-48 1. ESMA’s mission is to enhance investor protection, promote orderly financial markets and safeguard financial stability, by (i) assessing risks to investors, markets, and financial stability, (ii) completing a single rulebook for EU financial markets, (iii) promoting supervisory convergence and (iv) supervising specific financial entities. 2. In order to fulfil its mission, the ESMA Strategy 2023-20281 sets out three strategic priorities: (i) fostering effective markets and financial stability, (ii) strengthening supervision of EU financial markets, and (iii) enhancing protection of retail investors and two thematic drivers: (i) enhancing sustainable finance, and (ii) facilitating technological innovation and effective use of data. 3. ESMA shall act within the powers conferred by its establishing Regulation (ESMA Regulation or ESMAR2) and among others within the scope of Regulation (EU) No 648/2012 (EMIR). EMIR 3 entrusts ESMA with several tasks with respect to the authorisation and the recognition of Central Counterparties (CCPs). More specifically, Article 23b of EMIR tasks ESMA with establishing a cross-sectoral monitoring mechanism bringing together the relevant EU bodies involved in the supervision of EU CCPs, clearing members and clients for the exercise of the tasks listed in Article 23b(2) of EMIR (the Joint Monitoring Mechanism, hereinafter referred to as “JMM”). 4. In order...