ESMA (EMIR / MiFID II / MiFIR)
ISDA Focus: European Market Infrastructure Regulation (EMIR)
ISDA is an active participant in discussions with European legislators regarding the proposal for European Market Infrastructure Regulation (EMIR). The European Securities and Markets Authority (ESMA) launched a series of consultation on its technical standards under the Regulation on OTC derivatives, central counterparties and trade repositories (EMIR), which is aimed at improving the functioning of OTC derivatives markets in the European Union (EU). ISDA and FpML have submitted responses which are available below for download. While recent focus for FpML has been on US regulations and Dodd-Frank requirements, a core design principle has always been to implement a robust technical framework that can be leveraged by global regulators, as new regulations become available. The FpML organization recognizes that each jurisdiction may bring slightly different or additional sets of requirements and the FpML Reporting Working Group conducted a preliminary gap analysis and concluded that a majority of the ESMA data requirements are readily supported by existing FpML structures.
Once the final regulations are published, FpML intends to continue its analysis and implement support for EU regulations within the FpML specification. Where gaps exist, FpML intends to reach out to ESMA to fully understand the requirements and integrate them in the standard in a way that is aligned with ISDA’s belief that the EU legislation should be internationally coherent and interact well with legislation from other jurisdictions. The majority of the work done in FpML to support Dodd-Frank reporting can be leveraged by other jurisdictions. FpML is committed to help global regulators understand the extensive reporting capabilities developed and refined in the FpML open standard. FpML is open to share its experience with regulators interested in addressing the technical challenges of implementing mandatory clearing or swap data repositories.