March 20, 2024 (NO COMMENTS)

EU regulator must contend with tight timeframes and increasing workload without additional resources

EU regulator must contend with tight timeframes and increasing workload without additional resources Trilogue negotiators might be patting themselves on the back for finally coming to an agreement on the latest iteration of the European Market Infrastructure Regulation, known as Emir 3.0, but for one EU regulator the real work is just about to begin. As part of the regulatory package, the European Securities and Markets Authority (Esma) has been handed a litany of tasks littered with hurdles, but with no additional resources to carry them out. The regulator has been given six months following Emir 3.0 entering into force to come up with draft regulatory technical standards that set out the active accounts’ thresholds – ultimately determining how much euro-denominated derivatives clearing is relocated to the bloc. As EU commissioner Mairead McGuiness’s regulatory equivalence deadline for UK clearing houses remains as June 30, 2025, it may leave firms little time to prepare for the requirements coming into force.  Considering also that the final text has yet to receive approval from the European Parliament and Council before entering the EU’s Official Journal and being translated into the bloc’s 24 languages, June next year is ambitious.

Copyright Infopro Digital Limited. All rights reserved.