Article 85(1) of EMIR obliges the European Commission (the Commission) to review and prepare a general report on the Regulation. The Commission in particular is to assess a number of specific aspects of EMIR. These include the:
- access of central counterparties (CCPs) to central bank liquidity facilities;
- functioning of supervisory colleges for CCPs; and
- margin practices of CCPs.
The Commission’s review of EMIR will rely largely on feedback received from a public consultation that has now been launched. Interested parties are encouraged to complete a questionnaire that has been produced for the consultation by no later than 13 August 2015. As part of the review, a public hearing will also take place on 29 May 2015 in Brussels.
The Commission recognises that certain core requirements and procedures provided for under EMIR have not yet been implemented or completed. In particular, at this stage clearing obligations and obligations to exchange collateral in respect of non-cleared over-the-counter (OTC) derivatives transactions are not yet in force. It is therefore envisaged by the Commission that the report under article 85(1) will focus primarily on those aspects of EMIR that have been implemented.
Nonetheless, the Commission welcomes views as to any identified issues with respect to the implementation of upcoming requirements. However, the consultation does not seek views on any regulatory technical standards (RTS) that have not yet been adopted by the Commission. This includes the proposed RTS on the mandatory clearing of certain interest rate products in accordance with article 5 EMIR and the joint draft RTS of the European Supervisory Authorities on margin for uncleared OTC derivatives transactions mandated in accordance with article 11(3) EMIR.
Also, the Commission notes that ESMA recently conducted its own consultation on amended versions of the regulatory and implementing technical standards on trade reporting adopted by the Commission in accordance with article 9 EMIR and therefore the consultation does not seek any views with respect to the content of these technical standards nor the amended versions proposed by ESMA.