ESAs consultations: amendments to EMIR for securitisation issuers

In May 2018, the Joint Committee of the European Supervisory Authorities (“ESAs“) launched two consultations (the “Consultations“) to amend EMIR concerning (i) the clearing obligation and (ii) certain risk mitigation techniques for non-cleared OTC derivatives in respect of securitisation issuers.

Prior to the Consultations, the Securitisation Regulation amended EMIR to ensure one goal: consistency of treatment between derivatives entered into by covered bonds issuers; and derivatives entered into by simple, transparent and standardised (“STS“) securitisation issuers. Please click here to read our full briefing.

 

Dina Albagli
Dina Albagli
Partner, London
+44 20 7466 2390
Joy Amis
Joy Amis
Partner, London
+44 20 7466 2840
Jake Jackaman
Jake Jackaman
Partner, London
+44 20 7466 2883
Nick May
Nick May
Partner, London
+44 20 7466 2617
Michael Poulton
Michael Poulton
Partner, London
+44 20 7466 2777

No margin for error: the upcoming EMIR margin rules

EMIR is the centrepiece of the EU post financial crisis reform of derivatives markets and seeks to address perceived issues with counterparty credit risk and transparency. After a long and difficult consultation period, and some way behind other similar global initiatives, the next major piece of the EMIR framework will soon come into effect, which is the requirement for eligible counterparties to post margin on OTC derivative transactions.

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EU: EMIR timing for registration of trade repositories and reporting slips

The European Securities and Markets Authority (ESMA) has updated its EMIR implementation timetable.  ESMA now does not expect to make its decisions on the registration of the first trade repositories before 7 November 2013, rather than from 24 September as previously envisaged.  ESMA has indicated that the delay is in part attributable to difficulties faced by applicant trade repositories in ensuring the completeness of their applications (amongst other factors).  This means that ESMA does not expect that counterparties will start reporting to trade repositories before February 2014.

EU: ESMA begins detailing central clearing of OTC derivatives

The European Securities and Markets Authority (ESMA) has launched a Discussion Paper as a first step towards preparation for the regulatory technical standards (RTS) to implement provisions of the European Markets Infrastructure Regulation (EMIR) regarding the obligation to centrally clear OTC derivatives.  The consultation will assist in developing ESMA’s approach to determining those classes of OTC derivatives that need to be centrally cleared and the phase-in periods for the counterparties concerned.  Responses to the Discussion Paper are sought by 12 September 2013, and feedback received will be used to draft technical standards on the clearing obligation, on which there will be a further public consultation. Continue reading

EMIR: delays in delivery of technical advice on third-country equivalence, and also to the start of trade reporting requirements

The European Securities and Markets Authority (ESMA) has published a letter from the European Commission.  In order to enable ESMA to take account of international ongoing developments and to consider their implications fully, the Commission has revised the deadlines for ESMA to deliver certain technical advice on third-country equivalence under EMIR, the Regulation on OTC derivative transactions, central counterparties (CCPs) and trade repositories.   Continue reading

Derivatives update for corporates

The regulatory response to the credit crisis is having a profound effect on derivative markets. In our bulletin for corporate clients, we provide an update on three areas of change in the derivative markets primarily driven by regulatory reform – EMIR, the debate over credit valuation adjustment, and alternative mechanisms for transfer of collateral-  which will have an increasing effect on the way corporate clients use derivatives.

UK: Interim report on independent review of the Investment Bank Special Administration Regime

Peter Bloxham has completed the first phase of his independent review of the Investment Bank Special Administration Regulations 2011 and in February 2013 presented an interim report, which HM Treasury has now published.   In addition to making a number of immediate recommendations, the interim report sets out further areas to be reviewed as part of a second phase of work.  The SAR review home page indicates that Mr Bloxham would welcome views from interested stakeholders on the issues raised in this first report.   A final report is to be issued in July 2013. Continue reading

UK: EMIR countdown: Notification forms for 15 March and new Regulations for 1 April 2013

The FSA has published final versions of notification forms for the purposes of the European Market Infrastructure Regulation (EMIR) for use by from 15 March 2013.  The Government has also published the Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) Regulations 2013 in preparation for legal cutover to the UK’s new regulatory architecture on 1 April 2013. Continue reading

ISDA publishes EMIR Non-Financial Counterparty Representation Protocol and Timely Confirmation Amendment Agreement

The International Swaps and Derivatives Association, Inc. (ISDA) has published its March 2013 EMIR Non-Financial Counterparty (NFC) Representation Protocol and a Timely Confirmation Amendment Agreement.  The ISDA March 2013 EMIR NFC Representation Protocol is designed to allow swap market participants to simultaneously amend multiple ISDA Master Agreements for the purpose of facilitating compliance with certain Know Your Counterparty requirements of Regulation (EU) No 648/2012 on OTC derivatives, central counterparties and trade repositories (EMIR) and the regulatory technical standards made under it.  The documents are accompanied by a list of adhering parties to the protocol, FAQs on the protocol, Explanatory Memorandum for the timely confirmation wording.