News

Current Articles | RSS Feed RSS Feed

Emir Reporting Launch Was Satisfactory – Esma’s Petrenko

By Matt Cameron
Published April 11, 2014 Risk

Thousands of companies were stuck in queues when Europe's reporting regime took effect on February 12, some repositories were overwhelmed with data, and more than half of the one-sided trade reports filed so far cannot be matched up with the second side of the transaction – but the rules have got off to a satisfactory start, according to an official at the European Securities and Markets Authority (Esma).

Speaking yesterday at the annual meeting of the International Swaps and Derivatives Association in Munich, Olga Petrenko, market integrity officer with Esma, said problems had been expected and stressed the vast amount of work required by the industry.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Esma Set to Neuter Emir Frontloading Rule

By Matt Cameron, Fiona Maxwell
Published April 4, 2014 Risk

European legislators have agreed to sideline the so-called frontloading provisions of Europe's swap clearing rules, according to members of the European Parliament (MEPs) who took part in crunch talks in Brussels yesterday. A formal letter outlining the plans is now expected to be sent by the European Securities and Markets Authority (Esma) to the European Commission (EC) – the other two participants in the three-way meeting.

Frontloading requires outstanding swaps to be cleared if they belong to a product class that is later mandated for clearing, which is a problem because cleared and non-cleared swaps are subject to very different cost structures, and could therefore have been mispriced at inception.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

EuroCCP Receives EMIR Authorization

Published April 3, 2014 Automated Trader

European Central Counterparty is now an authorised central counterparty under the European Market Infrastructure Regulation (EMIR).

DNB, the Dutch central bank granted authorisation, being EuroCCP's EMIR National Competent Authority. By granting the license, DNB confirms that EuroCCP complies with EMIR, which includes requirements in respect of risk management, governance and capital.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

EMIR Reporting Falls Short

By Helen Bartholomew
Published April 3, 2014 IFR

Market participants are in a state of confusion because of the broad scope of Europe’s mandate for reporting over-the-counter swaps transactions to data repositories. This is threatening to undermine the original G20 commitment to bring safety and transparency to the financial system, according to some infrastructure providers.

“The message to regulators is to get a move on. We’re six years in now and if you haven’t got to a stage where you’ve got 100% capture, then you’re not achieving your goal,” said David Mercer, CEO of FX exchange LMAX, speaking at the City Week International Financial Services Forum in London this week.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

EMIR Frontloading: Crunch Talks Due This Week

By Fiona Maxwell and Matt Cameron
Published March 31, 2014 Risk

Dealers are hoping a long-running saga over the retrospective scope of Europe's clearing rules will be settled this week in meetings between regulators and legislators, but they are split on what outcome to expect. Traders claim it is impossible to price transactions that might later have to be cleared, but while some expect regulators to dramatically limit this impact, others are more pessimistic.

Three bankers told Risk that a meeting on the issue – known as frontloading – has been scheduled this week between the European Securities and Markets Authority (Esma) and the European Commission (EC). That is confirmed by a spokeswoman for Esma, who adds that members of the European Parliament (MEPs) will also be involved.

SocialTwist Tell-a-Friend Related Posts with Thumbnails
Tags: , , ,

Majority of Emir Derivatives Reports Cannot be Matched, Say Repositories

By Fiona Maxwell
Published March 24, 2014 Risk

Missing trade and entity identifiers mean up to 60% of derivatives trades reported under the Emir regime cannot be paired with their corresponding halves, say trade repositories

European repositories are warning up to 60% of derivatives trade reports entering their systems cannot be matched with their corresponding halves, leaving vast numbers of orphaned reports and a patchy picture of what is happening in derivatives markets.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

New Clearing Rules Vex Buyside Firms

By Phil Albinus
Published March 14, 2014 Traders Magazine

With the passage of Dodd-Frank and other regulatory mandates, buyside firms have to focus on the clearing of over-the-counter derivatives. Combined with Dodd-Frank in the U.S. and Basel III and the European Markets Infrastructure Regulation in Europe, the challenges of clearing these trades are more complex than ever.

Both Dodd-Frank Title VII and EMIR mandate that OTC contracts need to be cleared centrally for the vast majority of participants. According to Steve Grob, director of group strategy for Fidessa, the move from bilateral to centralized clearing creates a number of challenges for the buyside.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

National Interests Threaten Emir Progress

By Anish Puaar
Published March 13, 2014 Financial News

Fears are growing that national interests could be obstructing the approval of the first European clearing houses trying to comply with new swaps rules, according to people close to the regulatory process.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Manual Processes and Bottlenecks Threaten to Throttle OTC Derivatives Reform

By Elliott Holley
Published March 12, 2014 Banking Technology

Regulatory change in the OTC derivatives market has produced serious problems that indicate a clear need for more automation of cleared derivatives post-trade processing, according to a new report published by research house Greenwich Associates.

Market reforms currently affecting the derivatives markets include the G20 agenda agreed in Pittsburgh in 2009, under which 20 countries agreed in principle to reduce systemic risk by improving transparency in the OTC derivatives market. The Dodd-Frank Act in the US and EMIR in Europe are attempts to implement that agenda. Both pieces of legislation essentially mandate the central clearing and reporting of the bulk of formerly OTC derivatives contracts, along with their standardisation and trading on exchange-like platforms wherever possible.

full article describe the image (free)

SocialTwist Tell-a-Friend Related Posts with Thumbnails

Derivatives Trade Reporting Rules Suffer a Rocky Start

By Liz Salecka
Published March 7, 2014 Financial News

The reporting of derivative trades under the European Market Infrastructure Regulation is proving anything but a clear-cut exercise and, as issues persist, many industry players believe it could take up to six months longer to get things right.

full article describe the image (subscription)

SocialTwist Tell-a-Friend Related Posts with Thumbnails
All Posts