[Photo = Walt Lukken, President and CEO at Futures Industry Association]
With ESMA’s (European Securities and Markets Authority) regulatory technical standards (RTS) codifying the European Market Infrastructure Regulation (EMIR) into an applicable set of rules entering into force on 15 March 2013, the implementation timeline for EMIR has now become much clearer.
The CCP registration process
Under EMIR, CCPs apply for authorisation with ESMA to clear under EMIR. It is expected that this will happen sooner rather than later. CCPs will have the required paperwork ready to submit as soon as the regulatory technical standards (RTS) enter into force. Rumours are that up to 25 CCPs (EU as well as non-EU) might stand in line to apply. The national competent authority then has up to six months to review and approve the CCP application and authorise the CCP.
When does clearing become mandatory?
The clearing obligation needs to be defined and put into a respective regulatory standard. This is nothing more than defining which products ought to be cleared via a clearing house and in what time frame. The national competent authorities (NCAs) will have one month to notify ESMA of the classes of OTC derivatives already cleared by CCPs in their jurisdiction. With the authorisation of a CCP by an NCA, a notification of the clearing obligation should be issued to all market participants. ESMA then has up to six months to prepare a draft RTS specifying the classes of derivatives to be cleared and from when.
[Source: tabbforum.com]
