• Positions and Guidance from Authorities
  • November 13, 2015 | Authors: Philippe Goutay; Anselme Mialon
  • Law Firm: Jones Day - Paris Office
  • SECURITIES REGULATOR PROPOSES CHANGES TO EMIR REGULATION

    In response to the European Commission's consultation on EMIR, the AMF issued on October 15, 2015 a response highlighting CCP authorization process, reporting requirements to trade repositories, as well as difficulties faced by management firms with regard to access to clearing and interactions between the provisions of EMIR and the UCITS Directive.

    The AMF also put forward concrete proposals aimed at improving EMIR. Removal of the frontloading obligation is proposed. It is also proposed that nonfinancial counterparties below the mandatory clearing thresholds should be exempt from the reporting requirements to trade repositories with respect to intra-group transactions. In addition, the AMF proposes that CCP supervision colleges should be permitted to periodically reassess the risks and authorizations of the CCPs and also have the power to introduce new requirements for clearing members with regard to their relationship with their customers in order to enhance customer protection.

    Furthermore, the French markets authority believes that a revision of certain definitions is in order, namely the definition of OTC derivatives that objectively reduce the risk of nonfinancial counterparties.

    The consultation will be give rise to a report submitted to the Council and the European Parliament in October 2015.