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Barnier to IOSCO- we’ll get back to you

IOSCO has published a letter from Michel Barnier in reply to their own repeated requests for clarification on the status of Asian-Pacific CCP’s under EMIR (posts re. their concerns are here and here). Highlights (such as they are) of his response are as follows:

  • The letter opens with the caveat that although Mr Barnier is trying to provide clarity, the European Court of Justice is the final arbiter of EU legislation
  • The Commission has received technical advice from ESMA with respect to the legal\supervisory arrangements in the relevant countries[1]. Where significant disparities with EMIR are found, the Commission will engage in dialogue to explore alternative means of resolution
  • ESMA will shortly submit draft memoranda of understanding to the countries for their review
  • The Commission is aware that CCP’s in third-country jurisdictions are providing services to EU banks that are subject to the CRR, and that this will induce these CCP’s to seek with ESMA. Accordingly, the Commission will undertake equivalence assessments “in the very near future” to facilitate recognition of these CCP’s
  • The Commission will consider extending the time-period for these assessments in line with Article 497 CRR

So in summary- “thanks for your letters IOSCO…we’re still thinking about it”.

[1] Australia, Hong Kong, India, Japan, Singapore and South Korea

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