On August 2, the EU Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) published an addendum (Addendum) to draft regulatory technical standards (draft RTS) on margin requirements for uncleared over-the-counter derivatives, made under the European Market Infrastructure Regulation (EMIR). The Addendum clarifies Articles 34 and 36 of the draft RTS (which relate to application timing) and inserts a missing formula into Annex III of the draft RTS. DG FISMA notes in the Addendum that the European Commission (EC) intended for the “first wave of initial margin requirements” to apply one month after the draft RTS goes into effect. DG FISMA, however, felt that this intention was unclear in the draft RTS and that the amendments set out in the Addendum are necessary.
The draft RTS was initially submitted to the EC by the European Supervisory Authorities (ESAs) on March 8 and was subsequently endorsed with amendments by the EC on July 28. The ESAs have six weeks from this date to amend the draft RTS based on the EC’s amendments and resubmit the draft RTS to the EC in the form of a formal opinion.
The text of the draft RTS and the Addendum can be found here.