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Pan European regulator publishes final central counterparties 

August 6, 2014
Andrew Saks-McLeod, LeapRate

The European Securities and Markets Authority (ESMA) has today published its comprehensive final report regarding the implementation of the CPSS-IOSCO principles for financial market infrastructures in respect of central counterparties.

Following hot on the heels of the United States’ implementation of the requirement for all institutional FX trades to be processed via a central counterparty as part of the Dodd-Frank Act last year, the European Union took less than a year to emulate the methodology which will allow regulators to ensure full transparency on all OTC FX trades, with many European firms having gained regulatory approval to act as central counterparties recently.

EMSA considers that the difference between the operative language used in the EMIR framework and the operative language used in the principles for financial market infrastructure (PFMIs) were to prevent the EU from being graded as having consistently implemented the PFMIs in respect of central counterparties (CCPs) then there might be serious consequences for CCPs established in the EU (EU CCPs).

Read more: LeapRate

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