September 27, 2018

ESMA published its final report on the regulatory technical standards on clearing obligation under the European Market Infrastructure Regulation (EMIR). The draft regulatory standards relate to the deferred date of application for the treatment of certain intragroup transactions concluded with a third-country group entity. ESMA has sent the draft regulatory standards to EC for endorsement.

The following are the three Commission Delegated Regulations on the clearing obligation that mandate a range of interest rate and credit derivative classes for clearing:

  • Commission Delegated Regulation (EU) 2015/2205 regarding interest rate derivative classes
  • Commission Delegated Regulation (EU) 2016/592 regarding credit derivative classes
  • Commission Delegated Regulation (EU) 2016/1178 regarding interest rate derivative classes

These regulations contain a deferred date of application of the clearing obligation for intragroup transactions that satisfy certain conditions, and where one of the counterparties is in a third country, in the absence of the relevant equivalence decision. With the deferred dates soon approaching and, in the absence of implementing acts on equivalence on the legal, supervisory, and enforcement framework of a third country under Article 13(2) of EMIR in respect of the clearing obligation, ESMA proposes to prolong these exemptions for a very limited period of time. ESMA, with the first deferred deadline approaching on December 21, 2018, aims to find the right balance between the objective of a temporary exemption and the need to contain the risk of unintended consequences with respect to objectives of EMIR by deferring the date of application for two years (to December 21, 2020). In seeking to ensure simplicity, ESMA also proposes to align the date of extension for the three relevant Commission Delegated Regulations to December 21, 2020 in case no equivalence decision has been adopted. 

 

Related Links

Keywords: Europe, EU, Securities, Clearing Obligation, Regulatory Technical Standards, Intragroup Transactions, Third Country, Equivalence, ESMA 

Related Articles
News

US Agencies Adopt Rule to Exclude Community Banks from Volcker Rule

US Agencies (CFTC, FDIC, FED, OCC, and SEC) adopted a final rule to exclude community banks from the Volcker Rule, in line with amendments to certain sections of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

July 22, 2019 WebPage Regulatory News
News

US Agencies Adopt Amendments to Simplify Regulatory Capital Rules

US Agencies (FDIC, FED, and OCC) adopted a final rule that reduces regulatory burden by simplifying several requirements in the regulatory capital rules for banks.

July 22, 2019 WebPage Regulatory News
News

IA of Hong Kong Delegates Inspection and Investigation Powers to HKMA

HKMA and IA of Hong Kong jointly issued a statement announcing the delegation of the inspection and investigation powers of IA to HKMA, pursuant to the statutory regulatory regime for insurance intermediaries under the Insurance Ordinance.

July 19, 2019 WebPage Regulatory News
News

FSB Extends Implementation Timeline for Policy Recommendations on SFTs

FSB announced adjustments to the implementation timelines for its recommendations on securities financing transactions (SFTs), specifically those related to the minimum haircut standards for non-centrally cleared SFTs.

July 19, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for July 2019

EBA published answers to six questions under the Single Rulebook question and answer (Q&A) tool this week.

July 19, 2019 WebPage Regulatory News
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3482