Wednesday July 23 2014
News Source: Global Exchanges
Focus: Other
Type: General
Country: European Union
Link: http://www.esma.europa.eu/system/files/2014-esma-876.pdf
The European Securities and Markets Authority (ESMA) has published consultation paper on the calculation of counterparty risk by Undertakings for Collective Investment in Transferable Securities (UCITS) which enter into OTC derivative transactions which need to be centrally cleared under the European Markets Infrastructure Regulation (EMIR).
The Discussion Paper is seeking stakeholders’ views on how the limits on counterparty risk in OTC derivative transactions that are centrally cleared should be calculated by UCITS, and whether the same rules should be applied by UCITS for both centrally cleared OTC transactions and ETDs.
This discussion paper distinguishes between different clearing arrangements. For each of those clearing arrangements, ESMA analyses the impact of a default of the clearing member (CM) and the client for the
calculation of the counterparty risk by UCITS.
Click link above for further details.