ESMA has released a supervisory briefing detailing the representativeness obligation for Central Counterparties (CCPs) concerning their Approved Alternative Arrangements (AARs). The document clarifies expectations for CCPs to ensure that their AARs adequately reflect the market and do not create undue barriers to entry or competition. This guidance is intended to promote a harmonized supervisory approach across the European Union regarding the application of these representativeness requirements.

Compliance officers at CCPs and related financial market infrastructure entities must review this briefing to understand the specific supervisory expectations. While this is a non-binding guidance document, adherence is crucial for demonstrating compliance with existing regulatory frameworks. Entities should assess their current AARs against the criteria outlined in the briefing and make any necessary adjustments to ensure continued compliance and avoid potential supervisory scrutiny. No specific compliance deadline is provided, but prompt review and internal assessment are recommended.