Regulation on third-country central counterparties or related third parties by the European Securities and Markets Authority

This regulation establishes the formal procedures the European Securities and Markets Authority (ESMA) must follow when imposing penalties on central counterparties (CCPs) based outside the EU or their related parties. It ensures that the process for applying sanctions is transparent, fair, and consistent across the financial markets.

This affects non-EU financial institutions providing clearing services to EU clients. It clarifies how fines and penalties are calculated and administered if these entities fail to comply with EU financial regulations.