Derivatives Trading Platforms

Of relevance to: Any European firm trading in derivatives on authorised US markets Key date: Applicable from 30 September 2017 The European Commission and the US Commodity Futures Trading Commission (“CFTC”) have agreed on a common approach regarding certain derivatives trading platforms, allowing European counterparts to continue trading in derivatives [...]

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EMIR Review

Of Relevance to: Firms subject to European Markets Infrastructure Regulation The FCA has issued an EMIR update alert to inform us that the European Commission has published proposals to amend EMIR. Aspects of the proposals include the removal of the frontloading and backloading requirements – frontloading concerns the clearing of [...]

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Variation Margin

Of Relevance to: Firms trading in OTC derivatives A reminder that the EMIR Variation Margin Regulations (2016/2251) apply from 1 March 2017 in respect of uncleared OTC derivatives (although it was 4 February 2017 for those large players with uncleared derivatives in excess of €3 trillion). The Regulations require a [...]

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Securities Financing Transactions Regulation: Disclosure Obligation

Of Relevance to: Firms concluding Securities Financing Transactions Securities Financing Transactions Regulation: Disclosure Obligation A reminder that, as advised in Regulatory Roundup 72, the ‘risks and consequences’ disclosure obligation arising under the Securities Financing Transactions Regulation (2015/2365) (“SFTR”) applies from 13 July 2016. A Securities Financing Transaction (SFT) is defined [...]

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EMIR: Mandatory Clearing

Article 4 of EMIR places a clearing obligation on all OTC derivative contracts which fulfil the conditions therein – but only once ESMA has determined which classes of OTC derivatives should be subject to the clearing obligation (Article 5(2)); see Regulatory Roundup 57 for further details, On 6 August the [...]

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EMIR and Frontloading

Firms that will have to come to grips with the ‘frontloading requirement’ (see previous article) will be interested in the recent ESMA Review of the EMIR Framework (2015/1254).  The content is being submitted to the European Commission to feed into the general report on EMIR that it will prepare and [...]

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EMIR Backloading

It’s now a year (12 February 2014) since the reporting obligation to report to a Trade Repository under EMIR came into force. Firms subject to the EMIR reporting obligation may recall that there were phased reporting windows depending whether the contracts were: i) entered into before 16 August 2012 and [...]

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EMIR Review

With reporting under EMIR having been in place for around six months, the FCA has undertaken an EMIR review to find out how industry dealt with the new obligations. It also took the opportunity to assess how the industry had prepared for the start of the collateral and valuation reporting [...]

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EMIR: Clearing Update

Under Article 5(2) of EMIR ESMA is required to determine which classes of OTC derivatives should be subject to the clearing obligation and then draft appropriate Regulatory Technical Standards (RTS) within six months of the authorisation (if EU) or recognition (if non-EU) of Central Clearing Counterparties (CCP). With the first [...]

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EMIR: Risk Mitigation

As we know, certain risk mitigation techniques relating to OTC derivative trades not cleared by a CCP came into force on 15 September 2013, namely: Dispute resolution: a firm must tell the FCA about any disputes between counterparties relating to an OTC, its valuation or the exchange of collateral for [...]

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