The European Securities and Markets Authority (ESMA) has published a new Q&A on the European Markets Infrastructure Regulation (EMIR) to promote common supervisory approaches on the application of EMIR. The Q&A are split into the following sections:
- OTC derivatives - including definitions of OTC contracts, the notification and calculation of the clearing threshold, responsibilities of the FC and NFC, what is timely confirmation and exemptions from the clearing obligation;
- CCPs - including collateral requirements, portability, deposit of financial instruments, stress testing, back testing and sensitivity analysis for new entities and authorisation; and
- Trade repositories - including the classification of financial instruments, reporting of collateral and valuation, reporting of outstanding positions, application to ETD transactions.