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ESMA makes time to introduce left hand to right

In a rather last-minute bid for consistency among its own flagship pieces of legislation, ESMA has informed the EC that the final draft MiFIR RTS on exchange-traded derivatives will be delayed pending a re-write of its EMIR counterpart. Steven Maijoor writes to Jonathan Hill, his opposite number at the EC,

“In the interest of preserving the smooth and orderly functioning of the markets. ESMA is of the opinion that amendments to the EMIR RTS need to be considered. ESMA thus intends to conduct a consultation on the possible amendments to the EMIR RTS that would be consistent with the requirements as envisaged for the draft MiFIR RTS.”

The required changes come as a result of concerns raised through a series of MiFIR consultations, with specific regard to indirect clearing. Indirect clearing is a well-chewed bone of contention, Goldman Sachs provided a useful summary of the issues back in late 2013 in response to a first draft EMIR RTS. Given the already tight implementation timeline for MiFID2/MiFIR, if legislative harmony comes at the cost of delay and uncertainty, it is also unlikely to be in “the interest of preserving the smooth and orderly functioning of the markets”.

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