EMIR

Clearing Obligation (CO) and Derivative Trading Obligation (DTO) – Final Report

ESMA published a final report on draft regulatory technical standards (RTS) amending the RTS on the clearing obligation and on the derivative trading obligation under Article 5(2) of EMIR and Article 32 of MiFIR. The proposed amendments to the draft RTS aim to ensure a smooth benchmark transition while maintaining an effective scope for the CO and DTO, in line with the G20 objectives. They amend the scope of the CO and the DTO to accompany the benchmark transition for OTC derivatives away from EONIA and LIBOR and on to new Risk-Free Rates.

New EMIR implementation ESMA Q&A published

New ESMA Q&A relating to EMIR implementation have been published.

Consultation papers open for public comment

• CCPs - ESMA published a consultation paper on highly liquid financial instruments with regards to the investment policy of central counterparties. The consultation closes on 24 January 2022.

• Initial Margin models - On 4 November 2021, the European Banking Authority (EBA), in consultation with ESMA and EIOPA (the other two bodies that comprise the European Supervisory Authorities (ESAs)), published the long-awaited consultation paper on draft regulatory technical standards (RTS) on the proposed requirement on in-scope firms to obtain regulatory approval for initial margin models that they use (called Initial Margin Model Validation, or IMMV, in the consultation paper). The consultation is open until 4 February 2022, with a public hearing on 15 December 2021.

  Read more here.

• Clearing obligation - On 22 November 2021, ESMA published a discussion paper on a review of the clearing thresholds under EMIR. ESMA will consider all comments received by 19 January 2022.