FMLC and the US-based Committee on Capital Markets Regulation (CCMR) have issued an addendum to their comment paper on issues of legal uncertainty relating to the recognition and supervision of CCPs. This paper was previously published after examination of the legal and regulatory issues in the context of the continuing delay in the adoption by the Commission of a positive equivalence decision on the regulation applicable to CCPs in the US and the consequent non-recognition of US CCPs for the purposes of EMIR (see FReD 4 September 2015). The paper’s main points included:

  • regulatory differences should not preclude mutual recognition;
  • the US Commodity Futures Trading Commission should outline a clear pathway to substituted compliance for foreign CCPs; and
  • a template for appropriate levels of host participation in supervisory colleges established by home regulators should be determined as soon as possible.

The addendum provides further comments on the problems of legal uncertainty posed by the continued delay in the adoption of a positive equivalence decision in light of recent regulatory developments, particularly the entry into force of the mandatory clearing obligation for certain interest rate swaps. It also discusses ESMA’s consultation on draft RTS with respect to margin period of risk for client accounts. (Source: FMLC Issues Addendum to Legal Uncertainty for CCPs Paper)