New frontloading threshold stirs up MEPs

While European regulators have staggered the start of clearing for financial counterparties, their threshold-based timeline makes the already vexing frontloading obligation almost impossible, critics say

risk1214-clock-shutterstock-2917306-app
Uncertainty: it's not clear when the RTS will take effect

When the European Securities and Markets Authority (Esma) released final proposals for the clearing of interest rate swaps on October 1, it looked like the industry had won a key battle – the regulator chose to stagger the clearing deadline for financial counterparties, rather than force thousands of firms to start clearing at the same time.

The first wave of these firms would fall into a new category two, with the deadline arriving 12 months after Esma's regulatory technical standards (RTS)

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here