EUROPE - The European Securities and Markets Authority (ESMA) has published a new consultation paper on technical standards for OTC derivatives trades under the EMIR regulation, reiterating its aim to reduce risks via the use of central clearing and risk mitigation techniques.
Following the European Parliament and the European Council's approval of the EMIR earlier this spring, ESMA has now launched a new consultation process.
The current consultation paper addresses draft Regulatory Technical Standards (RTS) and draft Implementing Technical Standards (ITS), which both set out the specific details of how Brussels is to implement EMIR's requirements.
This paper will help ESMA to define the framework for the application of the clearing obligation, as well as specify the risk-mitigation techniques for OTC derivatives not centrally cleared.
Additionally, the consultation paper seeks to gain input from market participants on how to specify the details of derivatives transactions that need to be reported to trade repositories.
The current paper also aims to define the trade repositories' data to be made available to relevant authorities, and set the information to be provided to ESMA for the authorisation and supervision of trade repositories.
The consultation will close on 5 August, while the final draft standards are intended to be submitted to the European Commission for endorsement by 30 September.
Verena Ross, executive director at ESMA, said: "The deadline is intended to ensure the Commission can endorse the standards by the end of the year and therefore meet the G20 commitments [agreed in Pittsburgh in 2009] on reviewing the OTC derivatives market to be centrally cleared by the end of the year."