Council of the European Union and European Parliament 27 November 2024, Directive (EU) 2024/2994 of the European Parliament and of the Council of 27 November 2024 amending Directives 2009/65/EC, 2013/36/EU and (EU) 2019/2034 as regards the treatment of concentration risk arising from exposures towards central counterparties and of counterparty risk in centrally cleared derivative transactions (Text with EEA relevance)

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Directive (EU) 2024/2994 of the European Parliament and of the Council of 27 November 2024 amends Directives 2009/65/EC, 2013/36/EU, and (EU) 2019/2034 to address concentration risk arising from exposures towards central counterparties (CCPs) and counterparty risk in centrally cleared derivative transactions. Key provisions include: (i) removing counterparty risk limits under Directive 2009/65/EC for derivative transactions centrally cleared through a CCP authorised or recognised under Regulation (EU) No 648/2012; (ii) requiring credit institutions and investment firms under Directives 2013/36/EU and (EU) 2019/2034 to identify, manage, monitor, and report concentration risk arising from exposures towards CCPs, with management bodies developing specific plans and quantifiable targets regarding systemically important CCPs; and (iii) conferring on competent authorities enhanced Pillar 2 supervisory powers, including the power to require institutions to reduce or realign exposures towards a CCP where excessive concentration risk is identified. Member States are required to transpose the Directive into national law by 25 June 2026.AI