Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: EMIR

IOSCO Produces CCP Stress Test Framework

Posted in EU Developments
On April 10, the International Organization of Securities Commissions (IOSCO), in conjunction with the Bank for International Settlements’ (BIS) Committee on Payments and Market Infrastructures, published a framework for supervisory stress testing of central counterparties (CCPs) in a single jurisdiction or across multiple jurisdictions. The framework’s focus is stated to be the evaluation of “broad,… Continue Reading

FCA Provides Update on EMIR United States Equivalence Decision and Intragroup Exemptions

Posted in EU Developments
On February 12, the United Kingdom Financial Conduct Authority (FCA) updated its webpage on the European Market Infrastructure Regulation (EMIR), about the equivalence decision for derivative transactions in the United States  adopted by the European Commission on October 13, 2017. The equivalence decision determined that the rules promulgated by the Commodity Futures Trading Commission on… Continue Reading

ESAs Publish Final Report Aiming to Align Variation Margin Rules for FX Forwards With Supervisory Guidance in Other Key Jurisdictions

Posted in Derivatives, EU Developments
On December 18, 2017, the European Supervisory Authorities (ESAs) published a final report aiming to align the treatment of variation margin for physically settled foreign exchange forward transactions (FX Forwards) with supervisory guidance applicable in other key jurisdictions. The amended draft variation margin regulatory technical standards on risk mitigation techniques for over-the-counter (OTC) derivatives not… Continue Reading

ESMA Consults on Guidelines on Anti-Procyclicality Margin Measures for CCPs

Posted in EU Developments, Financial Markets
On January 8, the European Securities and Markets Authority (ESMA) published a consultation paper on draft guidelines on anti-procyclicality margin measures for central counterparties (CCPs). The European Market Infrastructure Regulation (EMIR) recognizes that margin calls and haircuts on collateral by CCPs may have procyclical effects. EMIR therefore requires CCPs to regularly monitor and, if necessary,… Continue Reading

ESMA Publishes New/Updated Q&As on MiFID II, Commodity Derivatives, EMIR and MAR

Posted in EU Developments, Financial Markets
On December 14 and 15, the European Securities and Markets Authority (ESMA) published a number of new and updated question and answer documents (Q&As) relating to, among other things, the revised Markets in Financial Instruments Directive (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR). The Q&As relate to the following topics: MiFID II… Continue Reading

MiFIR and EMIR Indirect Clearing Regulatory Technical Standards Now Published

Posted in EU Developments
On November 21, the following Commission Delegated Regulations (Delegated Regulations) were published in the Official Journal of the European Union (OJEU): Delegated Regulation ((EU) 2017/2154) (MiFIR IC RTS), which supplements the Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR) with regard to regulatory technical standards (RTS) on indirect clearing arrangements); and Delegated Regulation ((EU) 2017/2155)… Continue Reading

ESMA Publishes Final Report on Transfer of Data Between Trade Repositories Under EMIR

Posted in EU Developments
On August 24, the European Securities and Markets Authority (ESMA) published a final report (Report) setting out guidelines (Guidelines) on the transfer of data between trade repositories (TRs) under the European Market Infrastructure Regulation (EMIR). The Guidelines apply to TRs registered or recognised by ESMA and aim to provide TRs with additional clarification on how… Continue Reading

ESMA Invites European Commission To Strengthen EU Third-country Equivalence Regime For Key Market Players In Light of Brexit

Posted in EU Developments
On July 10, the European Securities and Markets Authority (ESMA) published a letter (dated July 7) (Letter) from Steven Maijoor, ESMA chair, to Valdis Dombrovskis, European Commission (EC) vice president, on the regulatory regimes for non-EU countries (known as “third countries”) where they are within ESMA’s area of authority.… Continue Reading

European Commission Publishes Proposed EMIR Amendments Impacting the Relocation of Euro Clearing

Posted in Brexit, EU Developments, Financial Markets
On June 13, the European Commission (EC) published a proposed amendment (Proposal) to the European Market Infrastructure Regulation (EMIR) aimed at enhancing the supervision of EU and non-EU based or “third-country” central counterparties (CCPs). The Proposal follows the suggested reforms to EMIR published in May 2017 (for further information, please see the Corporate & Financial… Continue Reading

European Commission Proposes Reforms to EMIR

Posted in EU Developments, Financial Markets
On May 4, the European Commission (EC) proposed reforms (Proposal) to the European Market Infrastructure Regulation (EMIR). The Proposal aims to provide simpler and more proportionate rules for over-the-counter (OTC) derivatives to reduce costs and regulatory burdens for market participants without compromising financial stability.… Continue Reading

ESAs Publish Statement On Variation Margin Exchange

Posted in EU Developments, Financial Markets
On February 23, the European Supervisory Authorities (ESAs), which consist of the European Banking Authority, European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority, published a joint statement (Statement) in response to industry requests relating to operational challenges in meeting the deadline of March 1 for exchanging variation margin imposed by… Continue Reading

ESMA Issues Open Letter on EMIR Review and Sanctioning Powers to the EC

Posted in EU Developments, Financial Markets
On January 27, the European Securities and Markets Authority (ESMA) wrote an open letter (Letter) to the European Commission (EC) to ask it to consider a number of issues relating to its supervisory and sanctioning powers under the European Market Infrastructure Regulation (EMIR). This request is in the context of the ongoing review of EMIR… Continue Reading

ESMA Publishes Opinion Under EMIR

Posted in Derivatives, EU Developments, Financial Markets
On November 15, the European Securities and Markets Authority (ESMA) published an opinion (Opinion) under the European Market Infrastructure Regulation (EMIR). The Opinion is designed to promote a common supervisory approach in relation to: (1) new products and services offered by central counterparties (CCP) that require regulatory approval under Article 15 of EMIR; and (2) the meaning of “significant changes” under Article 49 of… Continue Reading

ESMA Publishes Final Report on Clearing Obligations for Financial Counterparties With Limited Activity Volumes

Posted in Derivatives, EU Developments, Financial Markets
On November 14, the European Securities and Markets Authority (ESMA) published a final report (Final Report) under the European Market Infrastructure Regulation (EMIR). The Final Report sets out draft regulatory technical standards (RTS), which amend the clearing obligations for financial counterparties with a limited volume of OTC derivatives activity (Category 3 Counterparties). Under the RTS, ESMA has proposed to postpone… Continue Reading

European Commission Adopts Delegated Regulation on Risk Mitigation Techniques Under EMIR

Posted in EU Developments, Financial Markets
On October 4, the European Commission (EC) adopted a delegated regulation (Delegated Regulation) containing regulatory technical standards (RTS) on risk mitigation techniques for uncleared over-the-counter derivatives, made under the European Market Infrastructure Regulation (EMIR).… Continue Reading

European Commission Publishes Addendum to Draft RTS on Margin Requirements for Uncleared OTC Derivatives Under EMIR

Posted in Derivatives, EU Developments, Financial Markets
On August 2, the EU Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) published an addendum (Addendum) to draft regulatory technical standards (draft RTS) on margin requirements for uncleared over-the-counter derivatives, made under the European Market Infrastructure Regulation (EMIR). The Addendum clarifies Articles 34 and 36 of the draft RTS (which… Continue Reading

European Commission Updates List of Recognized Third-Country CCPs

Posted in Derivatives, EU Developments, Financial Markets
On June 14, the European Securities and Markets Authority (ESMA) published an update to its list of third-country central counterparties (List of Third-Country CCPs) that are recognized under the European Market Infrastructure Regulation (EMIR) to offer services and activities in the European Union. The update includes the Chicago Mercantile Exchange, Inc. (CME), which was recognized… Continue Reading

Speech by Commissioner Jonathan Hill Highlights Need for Proportionate Rulemaking

Posted in EU Developments
On April 21, the European Commission (EC) published a keynote speech delivered by Commissioner Jonathan Hill in which he reported on progress towards the EU’s proposed Capital Markets Union (CMU) and responses received as part of the EC’s call for evidence (Call for Evidence) on the European Union’s (EU) regulatory framework for financial services.… Continue Reading

ESMA Publishes Opinions on DK Pension Schemes To Be Exempt From EMIR Central Clearing Obligations

Posted in EU Developments
On April 13, the European Securities and Markets Authority (ESMA) published a set of opinions (Opinions) in relation to the European Market Infrastructure Regulation (EMIR). The Opinions exempt three Danish-based pension schemes from the clearing obligations contained in EMIR and are addressed to Finanstilsynet, Denmark, the relevant competent authority for the pension schemes.… Continue Reading

CFTC Issues No Action Relief for EU-Based DCOs Authorized to Operate in EU

Posted in CFTC, Derivatives
Following on a joint statement by the Commodity Futures Trading Commission and European Commission announcing a common approach to the regulation of central counterparties (CCPs), the CFTC published a comparability determination regarding the European Market Infrastructure Regulation (EMIR). The CFTC found that certain EU laws and regulations provide a sufficient basis for an affirmative finding… Continue Reading

European Commission Adopts Equivalence Decision in Regards to US CFTC-Registered CCPs

Posted in Derivatives, UK Developments
See “CFTC Issues No Action Relief for EU-Based DCOs Authorized to Operate in EU” in the CFTC section. On March 15, the European Commission (the Commission) adopted an equivalence decision in regards to US central counterparties (CCPs). The equivalence decision will allow CCPs authorized and registered with the Commodity Futures Trading Commission to apply for… Continue Reading