The three European Supervisory Authorities (EBA, EIOPA and ESMA) launched on 10 June 2015 a second consultation on draft Regulatory Technical Standards (RTS) outlining the framework of the European Market Infrastructure Regulation (EMIR). This consultation builds on the first consultation held in April 2014 and follows an intense dialogue with other authorities and industry stakeholders. Therefore, the ESAs are now specifically seeking feedback on a narrow set of topics, since most of the issues which arose in the last consultation paper have been addressed in the amended version of the RTS.
In particular, the current consultation focuses on the margin requirements for the over-the-counter (OTC) derivative transactions that will not be subject to central clearing and on the criteria to ensure that the eligible collateral is sufficiently diversified and not exposed to wrong-way risk. The legal framework, upon which the consultation is carried out, is the Article 11 (15) of Regulation (EU) n. 648/2012 (EMIR), which establishes provisions aimed at increasing the safety and transparency of the OTC derivatives market in the EU.
In order to improve the overall quality of the draft RTS, the ESAs invite comments on the specific issues that are clearly outlined in the Consultation Paper and summarised in 8 questions. Comments will be considered most helpful if they:
- respond to the 8 questions stated;
- indicate the specific point to which a comment relates;
- contain a clear rationale;
- provide evidence to support the view expressed/rationale proposed;
- describe any alternative regulatory choices that should be considered.
To submit comments, contributors must click on the ‘send your comments’ button on the consultation page by 10 July 2015. The comments submitted after this deadline, or submitted via other means, may not be processed and will not be taken into consideration. Furthermore, as stated in the Consultation Paper, contributions will be published following the close of consultation, unless contributors request otherwise in the consultation form.
All the relevant documents and link can be found on EBA’s website.