ESMA advises Commission on EMIR equivalence: ESMA has published its advice to the Commission on the equivalence of third country regulatory regimes for OTC derivatives clearing, CCPs and TRs with EMIR. The Commission asked ESMA to assess the regulatory regimes of Australia, Canada, Hong Kong, India, Singapore, South Korea, Switzerland, the US and Japan. The advice on the US and Japan was the first due to be delivered, but ESMA thought it useful to cover aspects of other jurisdictions also. It found Australia's and Switzerland's regimes for CCPs equivalent to EU rules. It also proposed conditional equivalence for:

  • Hong Kong, Japan, Singapore and the US for CCPs;
  • the US and Japan for central clearing, requirements for non-financial counterparties and risk mitigation techniques for uncleared trades; and
  • the US for TRs. It did not find Japan equivalent for TRs because Japan informed it no Japanese TRs wished to register.

If the Commission makes equivalence decisions, equivalent third country rules can apply instead of certain provisions of EMIR and in some cases ESMA may recognise within the EU a CCP or TR authorised outside the EU. ESMA now needs to deliver its advice on the areas not covered for these jurisdictions by 1 October 2013. Meanwhile third-country CCPs must apply for ESMA recognition by 15 September if they want to continue to be offering clearing services directly to EU clearing members. (Source: ESMA Advises Commission on EMIR Equivalence)