EMIR | OTC Derivatives Reform News Updates

60 Percent of Derivatives Users Unprepared for Dodd Frank and EMIR —Study

By Ivy Schmerken
Published May 8, 2013 Advanced Trading

Sixty percent of derivatives end-users who face regulatory requirements from Dodd-Frank are not yet prepared for compliance, according to a recent survey of 156 end-users from derivatives advisory firm Chatham Financial.

The survey found that the vast majority of end users facing compliance requirements from Dodd Frank and EMIR are underprepared to meet obligations for both sets of rules.

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Tags: EMIR, Dodd-Frank, derivatives, regulation, regulators, compliance

Emir Forcing European Banks in Asia to Consider the Local Subsidiary Approach

By Alex Davis
Published April 18, 2013 Asia Risk

When the European Market Infrastructure Regulation, or Emir for short, became law in August last year, its extraterritorial implications were overshadowed by concern over the international reach of its US equivalent, the Dodd-Frank Act. But the March 15 activation of Emir's implementation standards on central counterparty (CCP) recognition has dragged Emir onto centre stage.

The issues surrounding the ‘US person' definition and Commodity Futures Trading Commission (CFTC) swap dealer registration requirements reportedly started to bite US firms in Asia – and their trading partners – from the fourth quarter of 2012 onwards.

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Tags: CFTC, CCP, central counterparty, Emir, swaps, futures, reform

Third of Buy-Side EMIR-Ready

By Richard Henderson
Published April 4, 2013 The Trade

Only a third of asset managers are operationally prepared for changes to post-trade processing of OTC derivatives in Europe, and many see costs for compliance rising, new research has shown.

The report, by consultancy Celent, found 28.6% of buy-side firms had already cleared swaps trades in a live environment in accordance with new rules under the European markets infrastructure regulation (EMIR), which will come into force later this year. A further 23.8% of asset managers stated they were near operational and were testing functionality of clearing of OTC derivatives trades.

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Tags: OTC, Europe, EMIR, Dodd-Frank, CCPs, central counterparties, buy side, European markets

The Implications of Emir and Dodd-Frank for Asia’s CCPs

By Keith Noyes
Published March 20, 2013 Asia Risk

Both the European Market Infrastructure Regulation (Emir) Article 25 and Section 5b of the Commodity Exchange Act (CEA) as modified by the Dodd-Frank Act contain prescriptive rules that may prevent covered persons from participating in third-country clearing houses that have not applied for recognition by the European Securities and Markets Authority (Esma) in the European case or that are not registered as a derivatives clearing organization (DCO) in the US case.

The net effect of this could well be that European/US banks are, in some circumstances, unable to participate as clearing members in Asian clearing houses which they would like to join and may potentially be shut out of certain business lines altogether.

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Tags: ESMA, Dodd-Frank, Commodity Exchange Act, Emir, CEA, CCPs, commodities, clearing houses

Europe Kicks Off Repository Debate

By Philip Stafford
Published February 21, 2013 Financial Times

Europe may face the controversy around key infrastructure to reform derivatives markets in coming weeks after the region’s regulators published proposals on fee structures for trade repositories.

The European Securities and Markets Authority (Esma) on Wednesday laid out three alternatives to the operators of the data warehouses as it seeks to cover its annual budget to administer them – a general annual fee to participants; volume-based fees; and a system that mixes both. Esma signalled its preference for a registration fee and annual charges based on volume of trades.

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Tags: Derivatives, OTC, EMIR, ESMA, Swap Data Repository

EMIR Delay Avoided With Last-Ditch Deal

By Richard Henderson
Published February 7, 2013 The Trade

The final sign off of the European markets infrastructure regulation (EMIR) will avoid potentially lengthy delays after regulators agreed a last minute deal related to the treatment of non-financial swaps users.

The European Parliament was expected to reject two of the technical standards for EMIR drawn up by the European Securities and Markets Authority (ESMA) relating to when non-financial firms would have to clear swaps through central counterparties (CCPs).

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Tags: Europe, Emir, CCPs, swaps, regulation, central counterparties, European markets infrastructure regulation

Gloves Come Off in Fight Over Emir

By Michelle Price
Published February 4, 2013 Financial News

The European Parliament’s Economic and Monetary Affairs Committee, known as Econ, is today poised to reject key details of new European derivatives reforms in a development that European policy experts have described as “precedent-setting” for the future of the European policymaking process.

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Tags: Europe, Emir, derivatives, reform, rules, Econ, policy

Risk.net Poll: Regulators Not Giving Enough Information

By Nick Sawyer
Published January 29, 2013 Risk

An overwhelming majority of respondents to a Risk.net poll feel they have not been given sufficient information by regulators to prepare for the implementation of new over-the-counter derivatives regulations.

Eighty-eight per cent of the 322 respondents felt they were lacking information, versus just 12% who thought existing regulatory announcements were enough to implement the rules, which include the Dodd-Frank Act in the US and the European Market Infrastructure Regulation (Emir) in the European Union.

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Tags: OTC, Dodd-Frank, Emir, derivatives, reform, regulation, regulators

Rolls-Royce CFO Issues Derivatives Regulations Warning

By Andrew Sawers
Published January 22, 2013 CFO

European regulatory measures designed to make the financial system safer don’t actually eliminate risk, they simply move it to nonfinancial companies, warns Mark Morris, the finance chief for Rolls-Royce, the British aero-engine maker. And there could be a negative impact on the economy, he says.

Speaking at a conference organized by The Economist Group (a minority owner of CFO), Morris criticized European regulators for seeking to deal with over-the-counter derivatives risk in the financial sector by requiring some contracts to be centrally cleared or to have collateral posted.

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Tags: European Commission, Europe, EMIR, derivatives, regulation, regulators

Delays Hit Final Approval of EMIR Rules

By Anish Puaar
Published January 9, 2013 The Trade

European policymakers have secured a one-month extension to the final sign off covering detailed rules that underpin new OTC derivatives legislation.

The Council of the European Union and European Parliament now have until 19 February to scrutinise rules developed by the European Securities and Markets Authority (ESMA) and European Banking Authority (EBA) that support the European market infrastructure regulation (EMIR).

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Tags: OTC, Emir, EBA, derivatives, regulation, legislation

News

60 Percent of Derivatives Users Unprepared for Dodd Frank and EMIR —Study

Emir Forcing European Banks in Asia to Consider the Local Subsidiary Approach

Third of Buy-Side EMIR-Ready

The Implications of Emir and Dodd-Frank for Asia’s CCPs

Europe Kicks Off Repository Debate

EMIR Delay Avoided With Last-Ditch Deal

Gloves Come Off in Fight Over Emir

Risk.net Poll: Regulators Not Giving Enough Information

Rolls-Royce CFO Issues Derivatives Regulations Warning

Delays Hit Final Approval of EMIR Rules

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