Friday January 30 2015

News Source: Global Exchanges

Focus: Derivative Market Segment

Type: General




The European Securities and Markets Authority (ESMA) has published an Opinion on the Draft Regulatory Technical Standard (RTS) on the Clearing Obligation on Interest Rate Swaps.

ESMA is entitled to amend the draft RTS and resubmit a formal opinion to the European Commission in line with ESMA Regulation.

The Opinion firstly outline the Legal Basis. This states that, pursuant to Article 5(2) of Regulation (EU) No 648/2012, ESMA will develop draft regulatory technical standards specifying the class of OTC derivatives.

The second part of the Opinion outlines Background and Procedure. It stipulates that ‘…on 18th December 2014, the Commission informed ESMA of its intention to endorse with amendments this draft RTS and submitted to ESMA a modified version of the RTS (the “modified RTS”) introducing, among others, (1) amendments to the date on which the frontloading obligation starts to apply and (2) a new provision on the treatment of non-EU intragroup transactions.

Pursuant to Article 10(1) of the ESMA Regulation, this notification from the Commission opens a period of six weeks during which ESMA may amend its draft RTS on the clearing obligation on the basis of the Commission’s proposed amendments and resubmit it to the Commission in the form of a formal opinion. ESMA has to send a copy of its formal opinion to the European Parliament and to the Council. In accordance with Article 44(1) of the ESMA Regulation the Board of Supervisors has to adopt a formal opinion.’

Click here to access ESMA Opinion.

Click on the above link for further information.