ESMA proposes to include ETDs in EMIR’s arrangements for CCPs
The European Securities and Markets Authority (ESMA) has issued today its final report on interoperability arrangements between EU-based clearing houses (CCPs) required under the European Markets Infrastructure Regulation (EMIR) and related Guidelines and Recommendations. In its report, ESMA recommends to extend the EMIR provisions related to interoperability arrangements to Exchange-Traded Derivatives (ETDs). A further extension to OTC derivatives will be assessed at a later stage.
The report provides a mapping and a description of the current interoperability arrangements between EU CCPs for different product types i.e. EU equities, EU government bonds and EU ETDs. In addition, it examines the reasons for extending the current EMIR framework to derivatives taking into account the corresponding costs and benefits to then conclude on the opportunity of such extension and its scope, i.e. restricted to ETDs and not yet to OTC derivatives.
ESMA will submit the final report to the European Commission, Parliament and Council so that its recommendation be endorsed and implemented. In the future ESMA may, if it deemed appropriate, ask to further extend the EMIR framework to OTC derivatives. ESMA will also cooperate with the Commission on the annual assessment of systemic risk and cost implication of interoperability arrangements.