European Market Infrastructures regulation (EMIR)
In 2012, following the 2008 financial crisis, the EU adopted the European Market Infrastructures regulation (EMIR) with the laudable objectives of increasing transparency in the OTC derivatives markets, to reduce the counterparty risk of derivatives contracts and to reduce operational risks associated with derivatives trading.
EFAMA welcomes the improvements recently brought by the EMIR Refit: It redefines the obligations imposed on derivatives users, recognising and solving some issues previously existing in EMIR, such as the disproportionate regulatory burden imposed on the least risky counterparties. We also advocate for a better alignment between EMIR and MiFIR, especially with regards to the clearing and trading obligations.
EFAMA's Reply to ESMA CP on the Draft RTS and ITS under SFTR & amendments to related EMIR RTS
EFAMA supports every efforts made to enhance financial markets regulation which reinforces the stability and the transparency of the financial system.
In that perspective, EFAMA welcomes the opportunity to comment on the ESMA consultation paper on the Draft RTS and ITS under SFTR and amendments to related EMIR RTS.
Prior to replying to the consultation, we wish to make the following general remarks
EFAMA response to the ESMA Discussion Paper on the trading obligation for derivatives under MiFIR
EFAMA, welcomes the opportunity to comment on the ESMA Discussion Paper (“DP”) on the trading obligation for derivatives under MiFIR.
As a principle, EFAMA supports every effort made to enhance financial market regulation which reinforces the stability of the financial system, of which MiFIR is an important part.
Prior to replying to the consultation, we wish to make the following general remarks.
Trade associations call for deletion of active account proposal in EMIR 3.0
EFAMA, BFPI Ireland, EACB, FIA EPTA, Federation of the Dutch Pension Funds, Finance Denmark, Nordic Securities Association, AIMA, ICI Global, FIA and ISDA, which collectively represent major European end users of derivatives along with providers of clearing services, have published a joint statement on the European Commission’s proposed active account requirement under the European Market Infrastructure Regulation (EMIR 3.0).
Active Accounts - Joint Trade Association Statement
EFAMA, BFPI Ireland, EACB, FIA EPTA, Federation of the Dutch Pension Funds,
Finance Denmark, Nordic Securities Association, AIMA, ICI Global, FIA and ISDA support positive
incentives to further enhance the attractiveness of EU clearing and EU Capital Markets, including
many of the measures proposed in EMIR 3.0. (read more)
EMIR 3.0: Detailed views on active accounts
EFAMA offers a detailed view on the active accounts proposal in this paper. Costs to the end investor are broken down into two main buckets i) operational build-out and ii) in nominal terms the much larger impact of loss of netting efficiencies. Potential impacts on financial stability are also examined, with a focus on the widening basis which will result from large volumes of one-directional flows onto an EU-CCP. The impact on margins and procyclicality are also studied. The analysis points to increased liquidity risk for