Version date: 21 May 2014 - onwards
CCP Question 20: Risk Committee [last update 21 May 2014]
Article 28 of EMIR - Risk Committee
Pursuant to Article 28(1) of EMIR, a CCP shall establish a risk committee, which shall be composed of representatives of its clearing members, independent members of the board, and representatives of its clients. Employees of the CCP, external independent experts and employees of competent authorities may attend in a non-voting capacity. None of the groups of representatives shall have a majority in the risk committee.
a) Is it possible for representatives of other interests (for example trading venues served by the CCP) to be members of the risk committee?
b) How broadly must an individual represent the interests of the CCP’s clients in order to qualify as a representative of such clients on the risk committee?
CCP Answer 20
a) The membership of the risk committee is prescribed in EMIR. An individual cannot be a member of the risk committee where they are neither a representative of the CCP’s clearing members, an independent member of the board, or a representative of the CCP’s clients. Such an individual might, however, be invited to attend risk committee meetings in a non-voting capacity.