11 August 2015
Planned changes to the EU regulation on OTC derivatives, central counterparties (CCPs) and trade repositories (EMIR) should help end the anomaly under which all non-EU exchange-traded derivatives (ETD) are treated as “OTC derivatives” for the purposes of EMIR.
The recently agreed Regulation on Securities Financing Transactions (SFTR) will amend the definition of “OTC derivatives” in EMIR and will introduce a new procedure for recognising non-EU markets as equivalent for these purposes. However, there are separate, differing processes for recognising non-EU markets as equivalent to EU markets under MiFID2/MiFIR.
Clifford Chance has prepared a briefing summarising the changes to EMIR and including tables identifying the processes for determining when non-EU markets and CCPs are equivalent to EU markets and CCPs under EMIR and MiFID2/MiFIR and summarising the benefits and consequences of, and the process and criteria for, an equivalence determination.