On 17 July 2014, the European Securities and Markets Authority (ESMA) published a letter from Michel Barnier, European Commissioner for Internal Market and Services, in which he responds to ESMA announcing its intention to ease certain frontloading requirements under Regulation 648/2012 on OTC Derivatives, Central Counterparties and Trade Repositories (EMIR).

In the response, Mr Barnier notes the frontloading requirement aims at ensuring a uniform and coherent application of EMIR and a level playing field for market participants. He states that the Commission is of the view that the frontloading of OTC derivatives should be avoided in cases where it would not achieve this objective.

Mr Barnier also notes that the determination of remaining maturities should be carefully assessed and duly motivated on the basis of the goals pursued by EMIR in general. In particular, the frontloading requirement should take into account the specificities of the different classes of OTC derivatives and the degree of uncertainty inherent to the different periods referred to in ESMA's original letter.