On 19 April 2013, HM Treasury published a letter signed by the finance ministers of Brazil, France, Germany, Japan, Russia, South Africa, Switzerland, the UK and the EU Commission outlining concerns over the lack of progress in developing workable cross-border rules in relation to OTC derivatives market.  The letter is addressed to the US Treasury […]

An interesting article from Risk Magazine regarding the impact of EMIR Article 25, which requires a central counterparty established in a non-EU country (a “Third Country CCP”) to be recognised by the European Securities and Markets Authority (“ESMA”) if it wishes to provide clearing services to clearing members established in the EU. The six-month grace […]

Introduction On 15 April 2013, the Financial Stability Board (FSB) published its Fifth Progress Report on the implementation by FSB member jurisdictions of the G20 commitment to reform global OTC derivatives markets.  The next progress report is expected to be published ahead of the G20 Leaders Summit in St Petersburg in September 2013. In summary, […]

On 12 April 2013, the International Swaps and Derivatives Association (ISDA) published a Letter on Margin Requirements for Non-Centrally Cleared Derivatives written jointly with the Institute of International Finance (IIF), the Association of Financial Markets in Europe (AFME) and the Securities Industry and Financial Markets Association (SIFMA). The letter is addressed to the Basel Committee […]

Risk Magazine is reporting that the International Swaps and Derivatives Association (“ISDA”) and the Futures and Options Association have finalised the long overdue standard “Client Cleared OTC Derivatives Addendum” (the “European Addendum”) designed to enable clearing members to sign up clients and so facilitate central clearing in Europe. The European Addendum was originally due to […]

On 22 March 2013, the ISDA March 2013 Dodd-Frank Protocol (the “DF Protocol 2.0”) opened.  The DF Protocol 2.0 is part of ISDA’s Dodd-Frank Documentation Initiative and attempts to assist the industry in complying with certain CFTC final rulings imposed under Title VII of the Dodd–Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank […]

Bloomberg is reporting that the CFTC has ruled that swaps executed between affiliates which are subject to the Dodd-Frank Act will not be subject to the requirement to clear.

On 22 March 2013, the EU Commission published a report on the “International Treatment of Central Banks and Public Entities Managing Public Debt with regard to OTC Derivatives”. Under Article 1(4) of EMIR, EU central banks and bodies responsible for the management of public debt are exempt from the reporting obligation, the clearing obligation and […]

On 20 March 2013, the European Securities and Markets Authority (ESMA) published a Questions and Answers document on EMIR.  The document supplements the EMIR FAQ document already published by the European Commission and is designed to promote common supervisory approaches and practices.  It is currently comprised of 21 questions and answers divided into 3 parts: […]