Co-authored by Tim Aron.
On March 20, the European Securities and Markets Authority (ESMA) published Questions & Answers (Q&A) relating to the implementation of the Regulation on OTC Derivatives, Central Counterparties (CCPs) and Trade Repositories (Regulation EU 648/2012, generally known as EMIR).
The Q&A states that its purpose is to promote common supervisory approaches in the application of EMIR among national regulators. Responses are provided to questions posed by market participants and regulators in relation to the practical application of EMIR grouped under three broad headings: OTC Derivatives, Central Counterparties and Trade Repositories. Issues addressed include the definition of OTC derivatives, clearing threshold calculation and notification requirements for non-financial counterparties, trade confirmations and requirements on CCPs with respect to recording of client assets and collateral portability.