EACH welcomes EU political agreement
21 February 2019 Brussels
Image: Shutterstock
The European Association of CCP Clearing Houses (EACH) has welcomed the agreement reached by the European Parliament and EU Member States on the targeted reform of the European Market Infrastructure Regulation (EMIR REFIT).
In particular, EACH welcomes the clarification that national insolvency laws do not limit the central counterparties (CCP) ability to port assets and positions in case of CM default.
EACH also particularly welcomes the decision that trades resulting from portfolio compression should remain subject to the clearing obligation until further assessment by European Íø±¬³Ô¹Ï Markets Association (ESMA) and the commission.
The clarification that the reporting responsibility should remain in the hands of those who hold the trade information until a holistic review of the reporting regime for derivatives is conducted, is also welcomed by EACH.
Additionally, Each welcomes the request for ESMA to consider whether the list of financial instruments available for CCP investment policy should be extended and potentially include money market funds.
Meanwhile, EACH question whether or not the exemption for UCITSs/AIFs from group level calculation of the clearing threshold weakens the G20 reforms and enforces an unlevelled playing field with other financial market participants.
Consequently, EACH has called on National Competent Authorities and ESMA to ensure that a definition and calculation of the clearing threshold does not lead to a systematic underestimation of the positions of the fund manager or lead to a circumvention of the clearing obligations.
In particular, EACH welcomes the clarification that national insolvency laws do not limit the central counterparties (CCP) ability to port assets and positions in case of CM default.
EACH also particularly welcomes the decision that trades resulting from portfolio compression should remain subject to the clearing obligation until further assessment by European Íø±¬³Ô¹Ï Markets Association (ESMA) and the commission.
The clarification that the reporting responsibility should remain in the hands of those who hold the trade information until a holistic review of the reporting regime for derivatives is conducted, is also welcomed by EACH.
Additionally, Each welcomes the request for ESMA to consider whether the list of financial instruments available for CCP investment policy should be extended and potentially include money market funds.
Meanwhile, EACH question whether or not the exemption for UCITSs/AIFs from group level calculation of the clearing threshold weakens the G20 reforms and enforces an unlevelled playing field with other financial market participants.
Consequently, EACH has called on National Competent Authorities and ESMA to ensure that a definition and calculation of the clearing threshold does not lead to a systematic underestimation of the positions of the fund manager or lead to a circumvention of the clearing obligations.
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