ESMA consults on the clearing obligation
12 July 2018 Paris
Image: Shutterstock
The European Securities and Markets Authority (ESMA) has published a consultation paper seeking views on the clearing obligation under the European Market Infrastructure Regulation.
The paper deals with an amendment of draft regulatory technical standards in regards to the treatment of intragroup transactions with a third country group entity.
The clearing obligation requires a range of interest rate and credit derivatives to be cleared.
However, intragroup derivative transactions with a third country entity do not have to be cleared.
This is due to a deferred application date—up to three years for these transactions—in the delegated regulations on the clearing obligation.
The deadlines for the three commission delegated regulations on the clearing obligation will expire on three different dates: 21 December 2018 for the first commission delegated regulation on interest swap rates (IRS), 9 May 2019 for the commission delegated regulation on credit default swaps, and 9 July 2019 for the second commission delegated regulation on IRS.
The consultation paper sets out to extend these deadlines.
The public consultation is open until 30 August 2018.
The paper deals with an amendment of draft regulatory technical standards in regards to the treatment of intragroup transactions with a third country group entity.
The clearing obligation requires a range of interest rate and credit derivatives to be cleared.
However, intragroup derivative transactions with a third country entity do not have to be cleared.
This is due to a deferred application date—up to three years for these transactions—in the delegated regulations on the clearing obligation.
The deadlines for the three commission delegated regulations on the clearing obligation will expire on three different dates: 21 December 2018 for the first commission delegated regulation on interest swap rates (IRS), 9 May 2019 for the commission delegated regulation on credit default swaps, and 9 July 2019 for the second commission delegated regulation on IRS.
The consultation paper sets out to extend these deadlines.
The public consultation is open until 30 August 2018.
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