The three European Supervisory Authorities (ESAs) have written to the EU Commissioner for Financial Stability, Lord Hill, expressing their concern regarding the delayed adoption of the joint draft regulatory technical standards on risk mitigation techniques for non-centrally cleared over-the-counter derivatives.  Whilst noting that the calendar for the implementation of these requirements were agreed at the international level the ESAs also set out a number of cross border issues that the delay would cause. The ESAs also believe that although the firms captured by the first date of application are small in number, they still represent a significant size of the market and therefore a substantial source of systemic risk.

View ESAs’ joint letter on the delayed adoption of the joint draft Regulatory Technical Standards on risk mitigation techniques for non-centrally cleared OTC derivatives, 30 June 2016