ESMA Reports On Emir Penalties
The European Securities and Markets Authority (ESMA) has issued its first annual report regarding supervisory measures carried out and penalties imposed by national competent authorities (NCAs) under the European Market Infrastructure Regulation (EMIR).
The report focuses in particular on the supervisory actions undertaken by NCAs, their supervisory powers and the interaction between NCAs and market participants when monitoring the compliance of the following EMIR requirements:
- the clearing obligation for certain OTC derivatives (Art. 4 EMIR);
- the reporting obligation of derivative transactions to TRs (Art. 9 EMIR);
- requirements for non-financial counterparties (Art. 10 EMIR); and
- Risk mitigation techniques for non-cleared OTC derivatives (Art. 11 EMIR).
ESMA has sent its report to the European Parliament, the Council and the Commission today, informing them about the findings, which will also help to gradually identifying best practices and potential areas that could benefit from a higher level of harmonisation.
Phase 5 of the uncleared margin rules (UMR) took effect from September 2021.
Temporary equivalence is set to expire on June 30 2022.
IRS trading volumes have fragmented without an equivalence agreement.
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.