Featured Product

    Valdis Dombrovskis of EC Speaks on Revision of EMIR

    June 11, 2018

    The EC Vice President Valdis Dombrovskis gave opening remarks at the European Parliament Plenary debate on the revision of European Market Infrastructure Regulation (EMIR). He mentioned that the proposal on EMIR being put forward is about simplifying EMIR and reducing costs and burdens where possible, without putting into question the core objectives of EMIR— that is, financial stability, risk mitigation, and transparency. The proposal is part of the Regulatory Fitness and Performance program (REFIT) of EC.

    Mr. Dombrovskis said: "The need to revise some of EMIR's requirements became evident from the responses we got to the EC’s general Call for Evidence on financial services legislation in 2016. Our proposal is technical, but important. Its saving potential is big. The estimated cost reductions are up to EUR 6.9 billion in fixed or one-off costs, and up to EUR 2.6 billion in annual operational costs." The proposal includes a more proportionate clearing obligation for non-financial firms. It exempts the smallest financial counterparties from the clearing obligation altogether. It introduces a new mechanism to suspend clearing in exceptional circumstances. It incentivizes clearing and improves access to it. It simplifies reporting requirements for businesses, without compromising the quality of data. He also highlighted that companies, market participants, regulators, and supervisors agree on the need for this proposal and largely support the proposal.

    He further mentioned that while the market has progressed, it has not yet adopted viable solutions for pension funds to centrally clear their derivatives. Over the past months, EC brought together all stakeholders to discuss progress toward a clearing solution for pension funds. He clarified that progress during the extended exemption period must be monitored and EC will set up a monitoring group for that purpose. Finally, he mentioned that the EMIR proposal is aimed to introduce some targeted amendments to simplify and to make the EMIR requirements more proportionate. However, these amendments need to uphold the fundamental objectives of EMIR: for instance, when it comes to reducing requirements to report or exchange bilateral margins for derivatives. He said, "We must keep in mind that this piece of legislation is one of the cornerstones of the new system we put in place after the crisis, in agreement with the G20. It is our collective responsibility to ensure that it remains effective."

     

    Related Link: Speech

    Keywords: Europe, EU, Securities, EMIR, REFIT, Proportionality, Clearing Obligation, Systemic Risk, EC

    Related Articles
    News

    HKMA Revises Implementation Schedule for Initial Margin Rules

    HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

    August 16, 2019 WebPage Regulatory News
    News

    HKMA Revises Guideline on Application of Banking Disclosure Rules

    HKMA issued a revised version of the Supervisory Policy Manual module CA-D-1 on guideline on the application of the Banking (Disclosure) Rules (BDR).

    August 16, 2019 WebPage Regulatory News
    News

    ECB Decision on Recognizing Reporting Member States Under AnaCredit

    ECB has finalized the Decision 2019/1348 (ECB/2019/20) that establishes procedure for recognizing non-euro area member states as reporting member states under the AnaCredit Regulation (EU 2016/867).

    August 16, 2019 WebPage Regulatory News
    News

    FASB Proposes to Extend CECL Standard Deadline for Certain Entities

    FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    IASB Adds Phase Two of IBOR Reform to Its Work Plan

    IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

    August 15, 2019 WebPage Regulatory News
    News

    FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

    FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

    August 15, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842

    FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    OCC Updates Bank Accounting Advisory Series in August 2019

    OCC released an update to the Bank Accounting Advisory Series (BAAS), which reflects accounting standards issued by FASB, through March 31, 2019, on topics such as hedging and credit losses.

    August 15, 2019 WebPage Regulatory News
    News

    APRA Consults on Final Phase Margin Rules for Uncleared Derivatives

    APRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.

    August 14, 2019 WebPage Regulatory News
    News

    APRA Applies Additional Capital Requirement for an Australian Insurer

    APRA decided to apply an additional $250 million capital requirement to Allianz Australia Limited to reflect the issues identified in the risk governance self-assessment by the insurer.

    August 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3646