The European Supervisory Authorities ("ESAs") published a second consultation paper on the draft Regulatory Technical Standards ("RTS"). The document outlines the framework for the margin requirement for non-centrally cleared derivatives under EMIR. The second consultation paper builds on the proposed outlined in the ESAs' first Consultation Paper, published in April 2014. After reviewing the responses to the first consultation paper, the ESAs engaged in dialogue with other authorities to identify operational issues that may arise from the implementation of the EMIR framework. The ESAs are
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SIFMA Asset Management Group ("SIFMA AMG") submitted comments to the European Supervisory Authorities ("ESAs") on the second Consultation Paper concerning risk-mitigation techniques for OTC-derivative contracts that are not centrally cleared. The SIFMA AMG explained that it did not respond to each of the specific questions posed by the ESAs – rather, it focused on the wider concerns relating to the application of the margin requirements. In particular, the SIFMA AMG stressed that: equivalence decisions should be made in good time prior to the implementation of EU margin requirements so as to
The Executive Committee of the NFA increased the required minimum security deposit for Forex Dealer Member transactions involving the British pound to 5% of the notional value of transactions.
The NFA Executive Committee increased the minimum security deposits required to be collected and maintained by Forex Dealer Members.
Two large buy-side trade groups asked regulators to provide transitional relief from the March 1 compliance date for variation margin requirements.