ESMA’s main roles in the post-trading area are implementing regulations on the EU’s markets infrastructure (EMIR) and central securities depositories (CSDR), co-ordinating issues such as settlement discipline and Target2-Securities (T2S), and providing information on the Settlement Finality Directive (SFD).
European Markets Infrastructure Regulation (EMIR)
EMIR came into force on 16 August 2012 and introduced requirements aimed at improving the transparency of Over-The-Counter (OTC) derivatives markets and to reduce the risks associated with those markets.
In order to achieve this, EMIR requires that OTC derivatives meeting certain requirements are subject to the clearing obligation and for all OTC derivatives that are not centrally cleared that risk mitigation techniques apply. In addition, all derivatives transactions need to be reported to trade repositories (TRs). Finally, EMIR establishes organisational conduct of business and prudential standards for both trade repositories (TRs) and central counterparties (CCPs).
Key EMIR provisions
- Reporting obligation for derivatives contracts
- Requirements for trade repositories (TRs)
- Clearing obligation for OTC derivatives and risk mitigation techniques for non-cleared OTC derivatives including non-financial counterparties (NFC) obligations
- Requirements for clearing houses/central counterparties (CCPs)
ESMA measures implementing EMIR
EMIR required ESMA to draft Regulatory and Implementing Technical Standards (RTS and ITS) to further detail and implement the provisions of EMIR.
These standards cover:
- Details of the data to be reported to TRs
- Details of the application for registration as a TR
- Data to be published by trade TRs and operational standards
- Colleges for CCPs
- General requirements and prudential requirements for CCPs
- Clearing obligation, risk mitigation techniques and NFCs
The provisions of EMIR together with the deadlines included within the different technical standards imply a phased-in implementation of the legal framework.
Last update 7 January 2015
23/02/13 Publication of the delegated regulations in the Official Journal 15/03/13 A. Entry into force of the delegated regulations
Central counterparty clearing
15/09/13 Previously existing EU CCPs authorisation application deadline [A+6 months] 18/03/14 B. First EU CCP authorised 18/03/14 First notification for the clearing obligation under Art. 5 [immediately after B] 01/10/14 Submission to the Commission of draft RTS on the clearing obligation for IRS
Trade repositories (TRs)
07/11/13 C. Adoption of the registration decision of the first trade repositories 12/02/14 Reporting start date for all asset classes [C+5 working days + 90 calendar days]