Covered bond industry protests against Esma clearing push
Esma has ignored calls to exempt covered bond vehicles from clearing, to the dismay of issuers
Covered bond issuers are becoming increasingly frustrated by pressure for them to clear derivatives trades, after the European Securities and Markets Authority (Esma) appeared to close the door on a wholesale exemption.
The industry does not post collateral on its derivatives and lacks assets that would be accepted by a clearing house, but a July 12 discussion paper from Esma argued an exemption was not envisaged by the European Market Infrastructure Regulation (Emir) – the region's clearing
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