ESMA publishes responses received to third Consultation Paper on Clearing Obligation
ESMA publishes the responses that were received regarding the third Consultation Paper on Clearing Obligation. The responses are available on this link.
moreESMA adds OMIClear to the list of registered CCPs under EMIR
ESMA has today added OMIClear C.C., S.A. to its list of registered CCPs under the European Markets Infrastructure Regualtion (EMIR). EMIR requires EU-based CCPs to be registered and non-EU CCPs to be recognised in the European Union (EU).
The updated list of registered CCPs and the public register of cleared derivative classes is available on ESMA’s website.
moreESMA issues updated Q&As for EMIR
ESMA issues updated Questions and Answers Implementation of Regulation EU No 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR).
The document is available here.
moreESMA consults on draft standards for the clearing of foreign-exchange non-deliverable forwards
The European Securities and Markets Authority (ESMA) has today published a consultation on draft regulatory technical standards (RTS) it has to develop und the European Markets Infrastructure Regulation (EMIR) for the clearing of foreign-exchange non-deliverable forwards.
This consultation paper seeks stakeholders’ views on the regulatory technical standards that ESMA is required to draft under Article 5(2) “Clearing Obligation Procedure” of the Regulation (EU) No 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties and trade repositories (EMIR). This paper follows the publication in July 2013 of a discussion paper on the clearing obligation under EMIR, the publication of the first consultation papers on the clearing obligation on interest rate classes and credit classes, and the publication of the Final Report on the clearing obligation on interest rate classes.
The input from stakeholders will help ESMA in finalising the relevant technical standards to be drafted and submitted to the European Commission for endorsement in the form of Commission Regulations, i.e. a legally binding instrument directly applicable in all Member States of the European Union. One essential element in the development of draft technical standards is the analysis of the costs and benefits that those legal provisions will imply. Input in this respect and any supportive data will be highly appreciated and kept confidential where required.
The consultation period runs until 6 November 2014.
2014/1185 Consultation Paper
moreESMA defines products, counterparties and starting dates for the clearing of interest rate swaps
The European Securities and Markets Authority (ESMA) has today issued final draft regulatory technical standards (RTS) for the central clearing of Interest Rate Swaps (IRS) which it is required to develop under the European Markets Infrastructure Regulation (EMIR). The RTS define those types of IRS contracts which will have to be centrally cleared, the types of counterparties covered by the obligation and the dates by which central clearing of IRS will become mandatory for them.
EMIR introduces the obligation to clear certain classes of OTC derivatives in central clearing houses (CCPs) which are either European CCPs authorised by national authorities or third-country CCPs recognised by ESMA. Central clearing of OTC derivatives is part of the G20 commitments aimed at reducing risk in the global financial system and requires a process for the identification of classes of OTC derivatives that should be subject to mandatory clearing. ESMA’s assessment is based on a number of criteria, including liquidity, price availability and standardisation.
Four IRS classes will need to be centrally cleared
ESMA’s IRS RTS define the following four IRS classes to be subject to central clearing:
- Basis swaps denominated in EUR, GBP, JPY, USD;
- Fixed-to-float swaps denominated in EUR, GBP, JPY, USD;
- Forward rate agreements denominated in EUR, GBP, USD; and
- Overnight index swaps denominated in EUR, GBP, USD.
ESMA defined these IRS classes following an analysis of all IRS classes currently being cleared in the EU by authorised CCPs.
Central IRS clearing will apply gradually
ESMA’s RTS define the implementation schedule for the counterparties to whom central clearing of the defined IRS classes will become mandatory. These counterparties will have to start central clearing of IRS after the entry-into-force of ESMA’s RTS in accordance with the following phase-in periods:
- clearing members (six months after the RTS entered into force);
- financial counterparties and other alternative investment funds (AIFs) (twelve months after the RTS entered into force);
- financial counterparties and other AIFs with a low level of activity in un-cleared derivatives (18 months after the RTS entered into force);
- non-financial counterparties (three years after the RTS entered into force).
In order to properly capture systemic risk, the counterparties included in the first two categories will also have to frontload those IRS contracts they have concluded between the date of publication of the RTS in the Official Journal and the respective starting date of the clearing obligation.
Next steps
ESMA has submitted today its final draft IRS RTS to the European Commission, which has now up to three months to endorse them. Following the non-objection period of the European Parliament and Council, the RTS will enter into force and become effective 20 days after its publication in the Official Journal.
2014/1184 Final Report
moreESMA publishes responses received to second Consultation Paper on Clearing Obligation
The public responses to the Consultation Paper on Clearing Obligation No2 on CDS have been published.
moreESMA adds LME Clear Ltd to list of registered CCPs under EMIR
ESMA has today added LME Clear Ltd to its list of registered CCPs under the European Markets Infrastructure Regualtion (EMIR). EMIR requires EU-based CCPs to be registered and non-EU CCPs to be recognised in the European Union (EU).
The updated list of registered CCPs and the public register of cleared derivative classes is available on ESMA’s website.
moreESMA publishes responses to first Consultation paper on Clearing Obligation
The responses received to the Consultation paper on Clearing Obligation no1 IRS are available here.
moreESMA adds CCP.A to list of registered CCPs under EMIR
ESMA has today added CCP.A, based in Austria, to its list of registered CCPs under the European Markets Infrastructure Regualtion (EMIR). EMIR requires EU-based CCPs to be registered and non-EU CCPs to be recognised in the European Union (EU).
The updated list of registered CCPs and the public register of cleared derivative classes is available on ESMA’s website.
moreESMA adds CME Clearing Europe Ltd to list of registered CCPs under EMIR
ESMA has today added CME Clearing Europe Ltd to its list of registered CCPs under the European Markets Infrastructure Regualtion (EMIR). EMIR requires EU-based CCPs to be registered and non-EU CCPs to be recognised in the European Union (EU).
Both the updated list of registered CCPs and the public register of cleared derivative classes is available on ESMA’s website.
more