The Dutch Central Bank (De Nederlandsche Bank) has published points of attention in relation to EMIR. The document is meant for banks, insurers, pension funds that enter into over-the-counter (OTC) derivative contracts and (general) clearing members.
The document is divided between points of attention for all relevant parties and points of attention for clearing members only and for end-users only.
The general points are the potential lack of eligible collateral, concentration risk due to limited number of CCPs and clearing members, the amendment by a CCP of the eligibility of collateral, insolvency risk of the CCP and the risk of incorrect administrative segregation by CCPs and clearing members.
The points for end-users only are the increase of contingent liquidity risk of new margin obligations, access to central clearing, increase of costs for OTC derivatives, credit risk on the clearing members, liquidity and collateral management, contract risk, risk of position- and concentration limits and potential less hedging of risks by end-users because of the costs involved.
The points for the clearing members are communication risk and the risk in providing transformation services.
DNB also points out that there are also points of attention in relation to non-central clearing: the client reduction risk and the bilateral margining requirements.
View in Dutch European Markets Infrastructure Regulation, 12 August 2014