site.btaImplementation of EU Regulation on Central Counterparties Ensured by National Law

The National Assembly adopted amendments to the Markets in Financial Instruments Act on second reading on Thursday. The amendments prescribe measures to implement Regulation (EU) 2021/23 on a framework for the recovery and resolution of central counterparties.

Under the amendments, central counterparties are postmarket infrastructures of the financial markets which play a key role in the clearing of derivatives (financial instruments) by stepping in between the buyer and the seller (usually banks or other financial institutions) to act as the buyer to every seller and the seller to every buyer.

The amendments are part of the measures for implementing the 2022 Action Plan related to Bulgaria's membership of the EU. The country lacks a licensed central counterparty and local entities that are clearing members of a central counterparty. Still, it is necessary to adopt targeted measures for the implementation of Regulation (EU) 2021/23.

The Financial Supervision Commission has been designated as the competent authority for the resolution of central counterparties.