FCA: List of pension scheme arrangements exempted from the clearing obligation
This note sets out, in tabular form, details of types of pension scheme entities and arrangements which have been granted exemption from the clearing obligation under EMIR and takes account of opinions by ESMA and EIOPA.
EC: EMIRrelated Delegated Regulation
The EC has announced that it has adopted a new set of rules that requires certain OTC credit derivative contracts to be cleared through CCPs in the form of a Delegated Regulation and which implements part of the clearing obligations set out in EMIR. This clearing obligation will enter into force subject to scrutiny by the European Parliament and the Council and will be phased in over three years to give extra time for smaller market participants to comply.
ESMA: Possible systemic risk and cost implications of interoperability arrangements
ESMA has published its final report on the risk and cost implications of interoperable arrangements between CCPs established under EMIR, including a prudential analysis at CCP level and the risk management tools used to mitigate the potential risks arising from interoperability. The report indicates that that EU CCPs have setup mechanisms to adequately mitigate potential risk of undercollateralisation, even in cases where reuse is permitted.
EC: Speech by Jonathan Hill: Danish Bankers' Association
Text of this speech, given on 4 March 2016, follows, in which Jonathan Hill discusses the capital markets union, particularly in relation to investment firms and to EMIR.
EBA/EIOPA/ESMA: Final draft technical standards on margin requirements for noncentrally cleared derivatives
The ESAs have published final draft regulatory technical standards outlining the framework of EMIR which cover the risk mitigation techniques related to the exchange of collateral to cover exposures arising from noncentrally cleared OTC derivatives and specify the criteria concerning intragroup exemptions and the definitions of practical and legal impediments to the prompt transfer of funds between counterparties. Documentation, available via the link below, includes a feedback table.
EC: Adoption of an “equivalence” decision for the CCP regime of CFTC
The EC has granted the equivalent regulatory regime for central counterparties as the EU, determining that CFTC has the equivalent requirements as the EU in regulating CCPs. A provisional version of the implementing act appears in the second link below.
EC: Implementing Decision in relation to the CCP regime of CFTC
Further to yesterday’s report, the Commission Implementing Decision (EU) 2016/377 of 15 March 2016 on the equivalence of the regulatory framework of the USA for central counterparties that are authorised and supervised by CFTC to the requirements of Regulation (EU) No 648/2012 of the European Parliament and of the Council has now been published in the Official Journal.
ESMA: Practical guidance for the recognition of thirdcountry CCPs
ESMA has published this document in relation to EMIR which sets out information on communication with ESMA prior to the application and on issues surrounding the submission of such applications.
ESMA/South Korean Financial Services Commission and the Financial Supervisory Service: MoU
The parties have established an MoU under EMIR which sets out cooperation regarding CCPs established and authorised or recognised in South Korea, and which have applied for EU recognition under EMIR. This was effective as at 15 March 2016.
FMLC: FMLC/CCMR Letters the EC and CFTC on the recognition and supervision of CCPs
FMLC has published the text of letters which welcome the announcement of the recently announced EU/US common approach in relation to CCPs and EMIR.