The Final Frontier On 17 November 2016, ISDA published a “Supplemental Rules Exhibit” (the “EMIR Supplement”) to the ISDA 2016 Variation Margin Protocol (the “Protocol”).  The purpose of the EMIR Supplement is to enable adherents to the Protocol to integrate amendments for margin rules for OTC derivatives in order to achieve compliance with EMIR[1] into […]

The FT website is reporting unnamed sources which confirm that Council approval of the EU non-cleared margin rules will be slightly delayed until 21 November. The Council is relatively free from formal procedures for approval and has been the subject of intense, but quiet, lobbying by investment banks keen to avoid the unfortunate coincidence of […]

As previewed by its own ECON committee, the European Parliament yesterday adopted the “final” draft of the long-awaited non-cleared margin rules under EMIR. The uncharacteristic fast-tracking has created the ironic situation in which market participants are now lobbying the Council to delay their adoption of the rules in order to avoid entry into application during […]

The chairman of the Econ committee, Roberto Gualtieri, yesterday announced that the Parliament would state its lack of objection to the non-cleared margin rules RTS in the 3 day plenary session beginning 24 October, almost a month in advance of market expectations. Assuming a similar non-objection by the Council, Parliament’s expedition advances application of the […]

As expected the European Commission has today adopted the EMIR non-cleared margin RTS. The adoption is in the form of a Delegated Regulation which will be subject to an objection period by the Parliament and the Council. While both bodies are entirely capable of lodging late-stage objections, as evidenced by the recent PRIIPS paralysis, such […]

Today’s Risk magazine quotes a number of unofficial sources who expect the EC to finalise the non-cleared margin RTS at a meeting on 4 October. The adoption would then be published in the OJ late November, entering into force 20 days later and entering into application one month after that.  This projected timeline would result […]

The EC has rushed to publish an addendum correcting the most glaring error in its 28 July RTS on non-cleared margin rules. The RTS stated that the first implementation of IM in the EU would be 1 September 2017, a full year after all other countries who are following the BCBS/IOSCO timetable. The addendum clarifies […]

On 28 July 2016 the EC published a letter to the Joint Committee of the European Supervisory Authorities (ESAs), stating that it will endorse a revised text [1] of the RTS on risk mitigation techniques for non-cleared OTC derivatives Article 11(15) of EMIR. The market has been on tenterhooks since 9 June 2016 when the Commission announced that it would […]

The Delegated Regulation to add NOK, SEK and PLN IRS contracts to the clearing mandate under EMIR was published in the OJ on 20 July 2016. As usual, the Regulation comes into force 20 days after publication, therefore applying from 9 August 2016. Frontloading for Categories 1 and 2 will accordingly begin on 9 October 2016.