Regulators from the US and EU met on 8 July to host a meeting of the Financial Markets Regulatory Dialogue. Each side brought an alphabet of agencies, subjects covered included key G20 reforms: Basel II capital\leverage\liquidity rules, respective implementation of derivatives reforms, and resolution planning[1]. Derivatives– a mutual pledge to provide greater certainty regarding trading, […]

ESMA has launched the first round of consultations in preparation for OTC derivative central clearing. Triggered by the authorisation of the first six CCP’s, each defining a new timeline per unique asset class; ESMA has released different consultation papers for IRS and CDS. Feedback will contribute to the final RTSs submitted to the EC in […]

On 4 July 2014, Keler CCP received the authorisation from the Central Bank of Hungary (MNB) to act as a CCP under EMIR.  Keler CCP is the ninth to be authorised, which leaves 13 outstanding applications in the pipeline. Keler CCP is authorised to clear the following classes of financial instruments: MiFID financial instruments / […]

In an unusually forthright speech yesterday, Michel Barnier stretched the limits of polite diplomatic language, almost explicitly implying that the EU grant of CCP equivalence will be withheld from the US pending the CFTC’s own recognition of the EU’s equivalency. “I intend to propose shortly that the European Commission adopt ‘equivalence’ decisions that will allow […]

On 30 June 2014, the FCA shared the reporting advice it had been providing to Authorised firms who are also Clearing Members of an authorised or recognised CCP under EMIR. The FCA adopts a proactive approach by advising these firms that under EMIR, the CCPs need to be made aware of the following for reporting purposes: […]

The FT reports that the EU is threatening to effectively derail the Transatlantic Trade and Investment Partnership (TTIP) talks, unless the US includes coordination of financial regulation as part of the package. Leaked documents confirm that the EU intends to up the ante by excluding discussion on all financial services, a move that would significantly […]

Prompted by yesterday’s authorisation of LCH. Clearnet Ltd. and perhaps by the “no exemptions” comment by a CFTC official, the FCA has suggested a convoluted workaround for EU CCPs who are caught in the US client asset catch 22. Article 39 EMIR, as clarified by Question CCP 8i ESMA Q&A, stipulates that a European CCP […]

LCH. Clearnet Ltd has today received approval from the BoE to act as a CCP under EMIR. The UK-based arm of the Clearnet Group joins its sister organisation in France, LCH Clearnet S.A., and the following list of EMIR-approved CCPs to date: LCH. Clearnet Ltd. Eurex Clearing A.G. LCH Clearnet S.A. KDPW CCP NASDAQ OMX […]

The EC has extended the transition period during which banks may apply lower capital charges to those CCPs not yet authorised under EMIR. CCPs will continue to be regarded as QCCPs for Capital Requirements Regulation (CRR) purposes until 15 December 2014. Article 497(3) of CRR allows the Commission to adopt an implementing act to extend […]