On January 27, ISDA responded to the European Securities and Markets Authority’s (ESMA) consultation on the active account requirement (AAR) introduced under the revised European Market Infrastructure Regulation (EMIR 3.0).
In the response, ISDA highlighted significant concerns about the proposed reporting regime to monitor compliance with the AAR. The proposal seems to go beyond what is necessary to monitor compliance and is inconsistent with the EU’s recent commitment to reduce administrative and reporting burdens.
The response also highlights that some aspects of the operational requirements – in particular, stress testing – are not clear.
However, the response welcome the fact that the proposed calibration of interest rate swaps denominated in Polish zloty for the representativeness requirement recognizes that liquidity at EU central counterparties is extremely limited.
Source: ISDA
NEWSLETTER SIGN UP
And receive exclusive articles on securities markets
As Technology Evolves, Asset Managers Adapt and Innovate
Citi Changes Organizational Structure
SEC Charges Virtu for Disclosures Relating to Information Barriers
ICE Futures Singapore Partners with CoinDesk Indices
Related articles
-
Availability of central clearing must be expanded before the Treasuries mandate goes into effect.
-
The three-year extension will provide much needed certainty to EU market participants for the moment.
-
Several legal, operational and capital issues crucial to implementation need to be resolved.
-
The appointment follows the decision of Isabelle Girolami to leave.
-
Bitnomial Exchange will be listing Bitnomial Clearinghouse cleared contracts starting 30 January.