EMIR: frontloading requirement and updated ESMA Q&As
The European Securities and Markets Authority (ESMA) sent a letter to the European Commission on 8 May 2014 notifying the commission of issues that it has identified regarding the frontloading requirement under Regulation (EU) No 648/2012 on over-the-counter (OTC) derivatives, central counterparties and trade repositories (EMIR).
Under frontloading, users of OTC derivatives transactions may be required to clear transactions that are entered into after a central counterparty has been authorised to clear transactions of that class.
ESMA has identified that the frontloading requirement ‘may introduce significant uncertainties in the market with the consequences mainly borne by derivatives end users. These consequences are legal, operational and financial… and the overall effect could well be a reduction in the incentive to hedge risks during a certain period (to avoid the consequences of the frontloading effect), which would in turn increase the unhedged risks and would impact negatively on financial stability’…
Click on the link below to read the rest of the Eversheds briefing.
News from Eversheds
News from The Lawyer
Briefings from Eversheds
The Groceries Code Adjudicator was set up to ensure that large retailers with a turnover of more than £1bn comply with the Groceries Supply Code of Practice.
Germany: Federal Cartel Office bans food retail giant EDEKA from squeezing suppliers, EDEKA goes to court
Attempts by German supermarket EDEKA to force suppliers to grant it ‘wedding rebates’ following its acquisition of Plus in 2009 were abusive and unlawful.
Analysis from The Lawyer
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions
‘Exotic’ investors and opportunities for legal work beyond M&A feature in The Lawyer’s high-level roundtable debate on south-east Europe