ESMA On Hold Mandatory FX NDF Clearing

ESMA Pulls Back from Mandatory Clearing for FX NDFs

The European Securities and Markets Authority announced on Feb. 4 that it has decided against moving forward with a proposal to mandate central clearing for non-deliverable currency forwards.

ESMA said it may propose clearing requirements for NDFs at a future date, but explained that more time is needed to address certain issues identified by market participants in their feedback on the proposal. These issues included concerns about the number of clearinghouses with the ability to clear NDFs and the lack of experience of NDF clearing.

The announcement marked an important change in ESMA policy on this issue. The European regulator issued a consultation paper in October that proposed a detailed set of regulatory technical standards for clearing NDFs and an implementation schedule starting in the fourth quarter of 2015.

In its February statement, ESMA also noted the importance of “international consistency” in the implementation of such a clearing obligation. The Commodity Futures Trading Commission is also considering whether to mandate clearing for NDFs but has not yet issued a proposal or determined when such a mandate should be implemented.

ESMA consults on review of EMIR standards relating to CCP client accounts

The European Securities and Markets Authority (ESMA) has today opened a public consultation on the review of Article 26 of its Regulatory Technical Standards (153/2013) under the European Market Infrastructure Regulation (EMIR) which deals  with CCPs’ client accounts. The consultation is aimed at: 

• central counterparties (CCPs); 

• their clearing members; and 

• financial and non-financial counterparties accessing CCP services as clients of clearing members.

ESMA is seeking stakeholder’s feedback until 30 September 2015.

2015/1295 Discussion Paper

Consultation on Review of EMIR Article 26 of RTS 153/2013

Related documents (title): 
Discussion Paper on the review of Article 26 of RTS 153-2013 Response form for the Discussion Paper on Review of Article 26 of RTS 153/2013
Creation and closing dates: 
27/08/2015 - 30/09/2015

Discussion Paper 

Review of Article 26 of EMIR RTS No 153/2013 with respect to client accounts

 

Responding to this paper

ESMA invites comments on all matters in this Discussion Paper on the Review of Article 26 of RTS No 153/2013 with respect to client accounts and in particular on the specific questions summarised in Annex 1. 

All contributions should be submitted online at www.esma.europa.eu under the heading ‘Your input - Consultations’. 

Please follow the instructions given in the document ‘response form’ for the Discussion Paper on the Review of Article 26 of RTS No 153/2013 with respect to client accounts’ also published on the ESMA website.

 

Comments are most helpful if they:

1. respond to the question stated;

2. indicate the specific question to which the comment relates;

3. contain a clear rationale; and

4. describe any alternatives ESMA should consider.

 

ESMA will consider all comments received by 30 September 2015. 

 

Publication of responses

All contributions received will be published following the close of the consultation, unless you request otherwise.  Please clearly and prominently indicate in your submission any part you do not wish to be publically disclosed. A standard confidentiality statement in an email message will not be treated as a request for non-disclosure. A confidential response may be requested from us in accordance with ESMA’s rules on access to documents. We may consult you if we receive such a request. Any decision we make not to disclose the response is reviewable by ESMA’s Board of Appeal and the European Ombudsman.

 

Data protection

Information on data protection can be found at www.esma.europa.eu under the heading Legal Notice.

 

Who should read this paper

All interested stakeholders are invited to respond to this consultation paper. In particular, responses are sought from central counterparties (CCPs), their clearing members as well as the financial and non-financial counterparties accessing CCP services as clients of clearing members.

Status: 
Open
Show on key date: 
Show on key date