The European Securities and Markets Authority (ESMA) has published the responses received to its consultation on the draft regulatory technical standards implementing the provisions of the European Markets Infrastructure Regulation (EMIR) related to over-the-counter
(OTC) derivative transactions by non-EU counterparties aimed at preventing attempts by non-EU counterparties to evade EMIR’s provisions.
19 responses have been published including 3 from asset management firms, 10 from banking organisations, 1 from an issuer and 5 from others. A joint ISDA and BBA response makes a number of key points including calling on ESMA to:
- strike a more appropriate balance between identifying genuine evasion and
capturing genuine economic activity which is not evasive;
- work with other regulators to harmonise the approach to transactions entered into by local branches of third country/foreign entities to avoid
regulatory duplication; and
- clarify how the provisions will interact with similar legislation promulgated by
regulators in third countries (including but not limited to Dodd-Frank)
The European Commission has extended the deadline by which ESMA should deliver these draft technical standards to 15 November 2013 to give ESMA more time to analyse and take account of the responses received.