Featured Product

    European Council Adopts Updated Rules on Clearing of OTC Derivatives

    May 14, 2019

    European Council adopted a regulation improving the existing regulatory framework applicable to the market for over-the-counter (OTC) derivatives. This regulation, which simplifies certain aspects of the European Market Infrastructure Regulation (EMIR), will be signed in the week of May 20 and will enter into force 20 days after its publication in the Official Journal of the European Union.

    The rule introduces a new category of "small financial counterparties," which will be exempted from the obligation to clear their transactions through a central counterparty (CCP), while remaining subject to risk-mitigation obligations. Smaller non-financial counterparties will also have reduced clearing obligations. In addition, the text extends by another two years (further extendable twice by an additional year) the temporary exemption from the clearing obligation of pension scheme arrangements. The updated rules also streamline the existing reporting obligations to improve the quality of the data reported, make the supervision more effective, and increase access to clearing by removing the existing unnecessary obstacles. All of this translates into simplified rules for non-financial counterparties, small financial counterparties, and pension funds using financial derivative products.

    EMIR, which was adopted in 2012, forms part of the European regulatory response to the financial crisis and specifically addresses the problems encountered in the functioning of the OTC derivatives market during the 2007-2008 financial crisis. This regulation amends and simplifies EMIR to address disproportionate compliance costs, transparency issues, and insufficient access to clearing for certain counterparties.

     

    Related Links

    Effective Date: OJ+20 Days

    Keywords: Europe, EU, Banking, Securities, FMI, OTC Derivatives, EMIR, Reporting, Pension Funds, CCPs, Clearing Obligation, Capital Markets Union, European Council

    Featured Experts
    Related Articles
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153