ESMA delays Category 3 EMIR phase in deadline
16 November 2016 Paris
Image: Shutterstock
The European 麻豆传媒 and Markets Authority (ESMA) has offered respite to 鈥楥ategory 3鈥� firms struggling to comply with European Market Infrastructure Regulation (EMIR) implementation burdens.
The regulator has postponed the phase-in date for central clearing of over-the-counter (OTC) derivatives until 21 June 2019.
In ESMA鈥檚 final , in which it published its draft regulatory technical standards, it acknowledged that small, low-volume counterparties were struggling to establish clearing arrangements to meet the original compliance deadline, which was set for 21 June 2017.
The decision comes in response to feedback from ESMA鈥檚 July consultation paper in which it asked for feedback on Category 3 phase-in progress.
鈥淣ot surprisingly, there appears to be a close link between the level of preparedness of the counterparties and their size, or the size of their derivative activity, as those claiming to have finalised their clearing arrangements are generally found to be large asset managers or insurance companies,鈥� explained ESMA in the report.
The proposed amendments have been sent to the European Commission for comment, which is expected within the next three months.
The regulator has postponed the phase-in date for central clearing of over-the-counter (OTC) derivatives until 21 June 2019.
In ESMA鈥檚 final , in which it published its draft regulatory technical standards, it acknowledged that small, low-volume counterparties were struggling to establish clearing arrangements to meet the original compliance deadline, which was set for 21 June 2017.
The decision comes in response to feedback from ESMA鈥檚 July consultation paper in which it asked for feedback on Category 3 phase-in progress.
鈥淣ot surprisingly, there appears to be a close link between the level of preparedness of the counterparties and their size, or the size of their derivative activity, as those claiming to have finalised their clearing arrangements are generally found to be large asset managers or insurance companies,鈥� explained ESMA in the report.
The proposed amendments have been sent to the European Commission for comment, which is expected within the next three months.
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