EMIR: ESMA advises Commission on C6 energy derivatives
The European Securities and Markets Authority (ESMA) has issued today a report on C6 energy derivatives and related obligations under the European Market Infrastructure Regulation (EMIR).
These derivatives are important for firms trading energy derivative contracts on coal and oil as well as for national regulator supervisors who enforce EMIR requirements.
The report assesses the adequacy of mandating C6 energy derivative contracts, which currently benefit from a special exemption regime, subject to the clearing obligation and margin requirements of EMIR. ESMA also analysed the potential impact of including these contracts in the calculation to determine which counterparties are subject to clearing.
ESMA has developed this report to provide input to the European Commission’s regarding the assessment of the current special regime for C6 energy derivative contracts and whether this regime should be maintained.