Category: Central Counterparty Clearing
Battle Lines Drawn Over CCP Resolvability
Introduction In the context of the continuing industry and regulator discussion regarding CCP resolvability, last week ISDA published a position paper entitled “CCP Loss Allocation at the End of the Waterfall”. The paper addresses two scenarios: “Default Losses” – i.e. losses that remain unallocated once the ‘default waterfall’ is exhausted following a clearing member (“CM”) […]
3rd Country CCP’s- Confusion reigns
An interesting article in Risk magazine highlights the conjunction between EMIR 3rd Country CCP RTS and the CRR risk weightings. EMIR mandates that CCP’s have to apply to ESMA by 15th September, to benefit from a 180 day grace period during which they will be temporarily recognised as a QCCP. If they lack QCCP status, […]
Single Trade Repository on the Way?
On 12 August 2013, the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions published its report on Authorities’ Access to Trade Repository Data. Whilst primarily designed to provide guidance to trade repositories (TRs) and authorities on access to TR-held OTC derivatives transaction data, the report again raises the idea of […]
Systemic Importance gets (even more) expensive
12th August 2013. The CFTC issued a press release, announcing the approved final rules to implement enhanced risk management standards for systemically important DCO’s (“SIDCO”). The rules are intended to cohere with the BIS-IOSCO Principles for Financial Market Infrastructures recommendations, enabling the FSB-assessed SIDCO’s to continue as Qualifying Central Counterparties under international capital regulations. The […]
IOSCO Warns Regulators on EMIR CCP Recognition Processes
In early June, the Asia-Pacific Regional Committee of the International Organization of Securities Commissions (IOSCO) wrote a letter to European Commissioner Michel Barnier expressing concern about the recognition process for Asia-Pacific Central Counterparties (CCPs) under the European Markets Infrastructure Regulation (EMIR). The concerns are: • the need for greater transparency in the assessment methodologies and […]
EU Council Confirms Non-objection to RTS on CCP Colleges
Following the EU Council meeting held on 22 July 2013, the Council announced in a press release that it has decided not to oppose adoption by the Commission of a regulation on technical standards (RTS) on colleges for central counterparties (CCPs). This is in line with a recommendation given by the Council’s general secretariat on […]
Swap Cooperatives Breathe Easy (again)
19 July 2013. In a press release typical for its constant reincarnation, the CFTC’s DCR issued it’s fifth extension of “time-limited” relief with respect to swaps clearing by cooperatives. In summary, if one of the counterparties to a swap is a cooperative, whose members (or one of them) are non-financial entities, and the swap is […]
ESMA Consults on EMIR Clearing Obligation
Introduction On 12 July 2013, the European Securities and Markets Authority (ESMA) published a discussion paper regarding the clearing obligation under EMIR, and specifically the regulatory technical standards (RTS) ESMA is required to draft pursuant to Article 5(2) which details: the class of OTC derivatives that should be subject to the clearing obligation; the date […]
FSB to Study Feasibility of Master Data Repository
In a welcome move, Reuters is reporting that the Financial Stability Board (FSB) will publish a feasibility study in the first half of 2014 regarding the aggregation of all OTC derivatives transaction data reported to trade repositories.
Commission Publishes RTS on CCP Colleges
On 7 June 2013, the EU Commission published regulatory technical standards (RTS) on colleges for central counterparties (CCPs), as required by Article 18 of EMIR. The RTS addresses operational aspects related to the organisation and governance of supervisory colleges that must be set up to assess applications by CCPs for authorisation under EMIR. In particular, […]