ATHEXCLEAR Penalized for EMIR Violation Weeks Before FTSE Russell Market Review

08:20 28/3/2025 - Πηγή: Dikaiologitika

The Athens Stock Exchange (ATHEX) is facing renewed scrutiny just weeks before a pivotal review by FTSE Russell on April 8, which will determine whether Greece's capital market can regain its long-lost classification as a developed market.

The

timing couldn't be worse.

On Thursday, Greece’s Capital Market Commission imposed a €35,000 fine on ATHEXCLEAR, the clearing subsidiary of ATHEX, citing violations of European regulations governing financial market stability.

This is the first time in history that the Greek regulator has fined the Athens Exchange itself—a development that underscores the severity of the situation. The fine relates to breaches of the European Market Infrastructure Regulation (EMIR), which governs central counterparties across the EU. At the heart of the issue is the handling of a share placement by the National Bank of Greece, in which €200 million in cash should have been allocated for risk management purposes. ATHEXCLEAR failed to process that amount through its clearing model, in apparent violation of EMIR rules—an omission that reportedly benefited a specific brokerage.

According to the Commission, ATHEXCLEAR did not meet EMIR’s standards for maintaining sufficient default funds and pre-funded financial resources. These buffers are critical for protecting the market against extreme losses that exceed the normal margin requirements. In scenarios of high volatility or financial stress, such failures could compromise the clearinghouse’s ability to withstand a default by a major participant, potentially triggering a broader market disruption—especially in the derivatives segment.

The reputational damage from this incident is significant, particularly for international investors who rely on the clearinghouse’s credibility and regulatory compliance. ATHEXCLEAR’s standing as a reliable counterparty has now been called into question, shaking the trust of market professionals both within and outside Greece.

The regulatory action follows a separate incident on March 17, when a technical malfunction forced a suspension of trading on the exchange—an embarrassing episode attributed to a hardware failure in ATHEX’s OASIS trading system.

Together, the technical outage and the regulatory breach cast serious doubts over the operational resilience and governance of the Greek exchange at a time when international investors and market watchdogs are paying close attention. For ATHEXCLEAR, the penalty directly undermines its credibility as a central counterparty—a role that relies heavily on institutional trust.

The developments also raise questions about the stewardship of ATHEX leadership, including CEO Giannos Kontopoulos and Chairman Giorgos Chatzinikolaou, who now face mounting criticism for their handling of critical infrastructure and compliance issues.

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