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ESMA anoints US/Japan as unequivocally equivalent (well, almost)

3rd September 2013. ESMA published its latest advice to the European Commission with respect to extra-territorial equivalence with EMIR. The advice covers: central clearing, reporting, CCPs, trade repositories and non-financial counterparties, as well as risk mitigation techniques for uncleared trades. The advice is as follows:

  • US – equivalent in all of the above
  • Japan – equivalent for all of the above except recognition of trade repositories    
  • Hong Kong and Singapore – equivalence is only recognised (to date) for CCP’s

A decision will be made by 1st October 2013 with respect to: Australia, Canada, India, South Korea and Switzerland, as well as categories not covered above such as Singapore’s equivalence for risk mitigation. This is a pragmatic approach by ESMA, and will act to further allay market fears of an extra-territorial locking of horns amongst the major regulatory regimes.

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