meta_id 3299656

The European Securities and Markets Authority (ESMA) published its first annual report of the Joint Monitoring Mechanism on the active account requirement for central counterparties (CCPs). The report evaluates the effectiveness and implementation of the active account requirement, which mandates that CCPs maintain active accounts with multiple clearing members to enhance resilience and reduce concentration risk. The Joint Monitoring Mechanism, established to oversee compliance with this requirement across European CCPs, assessed performance during its inaugural monitoring period. The report builds on the interim report of the effectiveness of the active account requirement, providing comprehensive analysis of how CCPs have adopted and maintained the active account framework. The mechanism monitors adherence to regulatory standards designed to strengthen the financial infrastructure and reduce systemic risk within the European clearing ecosystem. The findings contribute to ESMA's broader mandate to ensure consistent implementation of European Union financial services regulations and promote the stability and integrity of securities markets. The active account requirement represents a key element of post-financial crisis reforms aimed at reducing counterparty risk and improving market resilience. By requiring CCPs to maintain multiple active relationships with clearing members, the framework reduces dependency on single clearing members and enhances operational continuity during periods of market stress. The report is available on ESMA's website and serves as a reference document for market participants, competent authorities, and other stakeholders involved in central clearing operations across the European Union. **Reference:** ESMA91-1525761655-5414