ESMA Wary of Funneling Energy Risks Into Banking Sector

The video discusses the impact of geopolitical events on market volatility, particularly in energy derivatives. It covers proposed trading halts to manage this volatility, addressing concerns from banks about market impacts. The discussion extends to challenges with clearing banks and collateral acceptance, exploring uncollateralized bank guarantees as a temporary measure. Finally, it emphasizes the need for regulatory cooperation on exposure limits to ensure financial stability.

What measures are being considered to widen the range of collateral accepted by CCPs?

How does ESMA intend to ensure that risks are not transferred from energy markets to financial markets?

What are the implications of loosening large exposure limits in banking regulation?