EUROPE: ESMA Informs Commission of its Intention to Ease Certain Frontloading Requirements under EMIR

Thursday May 8 2014

The European Securities and Markets Authority (ESMA) have sent a letter to the European Commission expressing its intention to ease certain frontloading requirements under the European Markets Infrastructure Regulation (EMIR). Frontloading is a term that refers to the clearing obligation under EMIR, which will oblige counterparties to centrally clear certain derivatives trades through clearing houses (CCP). ESMA believes that the frontloading procedure creates uncertainties for derivatives end-users while the exact terms of the clearing obligation has not been defined which could have adverse impacts on risk hedging and financial stability. Therefore, ESMA informs the European Commission that it intends to establish the frontloading requirement in a manner that will minimise uncertainty.

Click on the above link for further details.