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ESMA proposes reform to EU derivative regulation 

August 18, 2015

Daniel Flynn, International Adviser

The European Securities and Markets Authority (ESMA) has suggested changes to the governance of over-the-counter derivatives markets including a new process for handling regulatory differences between EU states. 

Following its review of the European Markets Infrastructure Regulation (EMIR) the independent EU authority published four reports, which include proposals to rethink the entire “equivalence and recognition process” of recognizing third country central counterparties during derivative trades. “There needs to be a better response to regulatory differences between third countries,” it said. “We propose that the jurisdiction decision be governed by Regulatory Technical Standards and that any recognition process should also include additional risk-based consideration allowing it to deny or suspend the recognition of a third country CCP.”

Read more: International Adviser

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