ESA Proposes Changes to OTC Derivatives Regulation

[kreslik.news]

This Friday the European Supervisory Authorities Authority (ESAs) launched two consultations regarding Regulatory Technical Standards (RTS) for non-cleared over-the-counter (OTC) derivatives. The two consultation papers propose amendments to RTS regarding the clearing obligation and risk mitigation techniques for non-cleared OTC derivatives.

In one of the consultation papers, the ESAs proposes amendments toclearing obligation regulation. Currently, financial counterparties, such as banks or asset managers, and non-financial counterparties, which includes any EU firm holding a specific number of positions in OTC derivative contracts, are forced to centrally clear certain classes of over-the-counter (OTC) derivative contracts through central counterparty ... (read more)