Banca d'Italia extends CC&G's authorization for power derivatives clearing
Banca d'Italia has extended the authorization for Cassa di Compensazione e Garanzia S.p.A. (CC&G) to provide central clearing services for power derivatives. This decision follows favorable opinions from ESMA and the College of Supervisors.
Regulatory green light for power derivatives
Banca d'Italia has officially extended the authorization for Cassa di Compensazione e Garanzia S.p.A. (CC&G) to offer central clearing services specifically for power derivatives.
This decision, formalized by the central bank, is rooted in the comprehensive regulatory framework established by Regulation (EU) No 648/2012, known as EMIR, which governs OTC derivatives and central counterparties.
Furthermore, it aligns with Legislative Decree 58/1998, the Consolidated Law on Finance, which designates Banca d'Italia and Consob as the primary competent authorities responsible for the authorization and ongoing supervision of CCPs within the national territory.
The extension follows CC&G's application submitted on February 12, 2025, which was subsequently amended on April 8, 2025, demonstrating the thoroughness of the review process.
Banca d'Italia confirmed the completeness of the application on February 28, 2025, initiating a detailed assessment phase to ensure full compliance with all pertinent EMIR requirements for this expanded scope of activity.
A coordinated assessment process
Banca d'Italia meticulously conducted its risk assessment, extending the review period from March 3 to May 7, 2025, as permitted by EMIR Article 17, to gather all necessary information.
On May 8, 2025, in coordination with Consob, Banca d'Italia submitted its comprehensive risk assessment report and a draft decision to ESMA and the College of Supervisors for CC&G.
This proposed decision made the authorization contingent on CC&G's full compliance with EMIR requirements and the fulfillment of two specific conditions.
Both ESMA, on May 28, 2025, and the College of Supervisors, on May 29, 2025, subsequently provided favorable opinions, confirming CC&G's compliance with EMIR, subject to the identified conditions.
Strengthening market infrastructure
This extension signifies a crucial step in enhancing the robustness of Italy's financial market infrastructure, particularly in the growing power derivatives segment.
By ensuring central clearing, systemic risks are mitigated, fostering greater stability and transparency for participants.
The approval reflects confidence in CC&G's operational capabilities, albeit with ongoing supervisory vigilance through specified conditions.