The Financial Markets Law Committee (FMLC) has published an addendum to its comment paper concerning resolving issues of legal uncertainty relating to the recognition and supervision of central counterparties.
In September 2015, the FMLC and the Committee on Capital Markets Regulation co-published a comment paper entitled Resolving issues of legal uncertainty relating to the recognition and supervision of central counterparties (the Comment Paper). The Comment Paper examined the legal and regulatory issues in the context of the continuing delay in the adoption by the European Commission of a positive equivalence decision vis-à-vis regulation applicable to central counterparties (CCPs) in the US and the consequent non-recognition of the US CCPs for the purposes of the European Market Infrastructure Regulation by the European Securities and Markets Authority (ESMA).
The purpose of the addendum is to provide further comments on the problems of legal uncertainty posed by the continued delay in the adoption of a positive equivalence decision by the EU and US regulatory authorities in light of recent regulatory developments, particularly, the entry into force of the EU’s mandatory clearing obligation for certain interest rate swaps. The addendum also discusses ESMA’s recent consultation on draft Regulatory Technical Standards amending Article 26 of Commission delegated Regulation No 153/2013 with respect to margin period of risk for client accounts.
View FMLC addendum to comment on issues relating to CCP recognition and supervision, 3 February 2016